BSE Shares Surge as SAT Cancels SEBI Penalty Over Subsidiary’s Actions

The Securities Appellate Tribunal (SAT) ruled that the Bombay Stock Exchange (BSE) cannot be held responsible for the actions of its subsidiaries. It cancelled a SEBI order that had fined BSE ₹3 lakh for supposedly breaking SECC rules through its subsidiaries’ investments.

SEBI’s Allegation Against BSE

SEBI had accused BSE of entering into businesses not related to stock exchange operations without getting SEBI’s prior approval. The issue was related to BSE’s subsidiaries making investments and holding stakes in companies like BTISPL, METSPL and BIL RFPL, which offer services unrelated to stock exchange functions.

SAT’s Reasoning and Verdict

SAT stated that neither the 2012 nor the 2018 SECC Regulations say that a stock exchange can be blamed for the activities of its subsidiaries. SEBI also failed to show any proof that BSE’s board approved or directed those investments. Therefore, SAT found BSE not guilty of any violation.

BSE’s Defence and Outcome

BSE said that the companies in question were formed even before the 2012 SECC rules existed, so the need for SEBI approval did not apply. It also mentioned it had already started selling off its stake in BIL. In the end, SAT supported BSE’s view and dismissed SEBI’s penalty.

Read more: BSE Share Price Hits All-Time High: Surges 78% in Just 27 Sessions.

Share Price Performance 

As of May 08, 2025, at 10:20 AM, BSE Limited share price is trading at ₹6,880 per share, reflecting a surge of 3.42% from the previous day’s closing price. Over the past month, the stock has surged by 24.23%. The stock’s 52-week high stands at ₹6,890 per share, while its low is ₹2,115 per share.

Conclusion

SAT concluded that BSE cannot be punished for actions taken by its subsidiaries, especially without clear evidence or board involvement. This decision highlights the need for regulatory clarity on how the rules apply to parent companies and their subsidiaries.

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