M/S PRRSAAR THROUGH ITS PROPRIETOR VED PRAKASH GUPTA vs NATIONAL STOCK EXCHANGE OF INDIA LTD

The Supreme Court held that the suspension of trading membership and the imposition of penalties by the appropriate authority must adhere to the limits set forth in the NSE Circular dated June 27, 2013, specifically stating that penalties cannot exceed Rs. 1,00,000 or 0.1% of the value of misuse. The Court found that the Appellate Tribunal failed to address the appellant's contention regarding the appropriateness of the suspension and the quantum of penalty, leading to the conclusion that the authority acted beyond its prescribed powers. Consequently, the Court quashed the suspension order and reduced the penalty imposed on the appellant.