Kotak Securities Limited through Its Authorized Representative Sandeep Gupta vs National Stock Exchange of India Limited — Bombay HC (2025) — LawSathi Research

Kotak Securities Limited through Its Authorized Representative Sandeep Gupta vs National Stock Exchange of India Limited — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Leave to withdraw the petition granted; petition disposed of as withdrawn; other challenges to the impugned Circular dated 7 January 2022 not examined and all contentions of all parties expressly kept open; no order for costs.

Issue for consideration

Whether NSEIL Circular No.02/2022 dated 7 January 2022, to the extent alleged by the Petitioner, travelled beyond the scope of certain Rules of the Securities Contracts (Regulation) Rules, 1956 (SCR Rules). (Raised but not decided; contentions kept open.) +1 more

Court's answer

The Court clarified that it is not examining the other challenges to the impugned Circular dated 7 January 2022, and all contentions of all parties in that regard are expressly kept open.

Ratio / Principle

Leave granted to the Petitioner to withdraw the petition; the petition is disposed of as withdrawn.

Key takeaways

The petition is disposed of in the above terms without any order for costs.ratio¶26

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (M. S. Sonak & Jitendra Jain, JJ.; decided 16 July 2025) — Writ Petition No.25 of 2024, Kotak Securities Limited v. National Stock Exchange of India Limited & Ors. The Petitioner had challenged NSEIL Circular No.02/2022 dated 7 January 2022 to the extent it allegedly travelled beyond the scope of certain Rules of the Securities Contracts (Regulation) Rules, 1956 (SCR Rules), and NSEIL's order dated 13 October 2023 imposing a penalty on it. Before disposal, counsel pointed out that the SCR Rules were amended on 19 May 2025; NSEIL issued a Circular dated 10 June 2025 amending the impugned Circular; and NSEIL's Member Committee, by order dated 15 July 2025 (taken on record), acknowledged that the penalty imposed by the order of 13 October 2023 no longer survives and stands superseded — its paragraph 8 stating that the directions in the earlier order no longer subsist, the penalty amount does not survive, and the review order supersedes the earlier order. The Court granted leave to withdraw and disposed of the petition as withdrawn, expressly declining to examine the other challenges to the impugned Circular and keeping all contentions of all parties open, without any order for costs.

2025:BHC-OS:11013-DB

Sayyed

2-WP.25.2024.docx

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION NO.25 OF 2024

Kotak Securities Limited through its authorized Representative, Mr. Sandeep Gupta ...Petitioner

Versus

National Stock Exchange of India Limited & Ors. ...Respondents

Mr. Rohaan Cama a/w Ms. Sherna Doongaji, Mr. Akilesh Menezes, Mr. Himanshu Kalwani & Ms. Kashish Bhatia i/by AZB & Partners for the Petitioner.

Mr. Vivek Shah a/w Ms. Shruti Rajan & Mr. Anubhav Ghosh i/by Trilegal for Respondent No.1-NSEI.

Mr. Rafique Dada, Senior Advocate a/w Mr. Nishit Dhruva, Ms. Khushbu Chhajed & Mr. Harsh Sheth i/by MDP Legal for Respondent No.2-SEBI. Adv. Jeel Shah a/w Ms. Seema Gupta i/by Mr. Ashish Mehta for Respondent No.3-UOI.

CORAM : M. S. Sonak & Jitendra Jain, JJ. DATED : 16 July 2025

PC.:-

Heard learned counsel for the parties.

The Petitioner had filed this petition, inter alia challenging Circular No.02/2022 dated 7 January 2022 issued by the National Stock Exchange of India Limited (NSEIL) (Respondent No.1) to the extent, according to them, it had travelled beyond the scope of certain Rules of the Securities Contracts (Regulation) Rules, 1956 (SCR Rules). The Petitioner had also challenged the order dated 13 October 2023 passed by NSEIL (Respondent No.1) by which penalty was imposed on the Petitioner.

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Sayyed 2-WP.25.2024.docx

The learned counsel for the Petitioner now submits that the SCR Rules have now been amended on 19 May 2025. Further, the NSEIL has issued a Circular dated 10 June 2025 to amend the impugned Circular No.02/2022 dated 7 January 2022.

Further, it is pointed out that the Member Committee of NSEIL has made an order dated 15 July 2025, taking cognisance of the amendment to the Rules and the impugned Circular, and based upon the same acknowledged that the penalty imposed by the impugned order of 13 October 2023 no longer survives, and stands superseded.

The order dated 15 July 2025 is taken on record.

Paragraph 8 of the order dated 15 July 2025 reads as follows:-

“8. Given the findings as mentioned above, the Committee decided that the directions contained in the Order no longer subsist and the penalty amount does not survive. This review order supersedes the earlier order.”

Given the above developments, the Petitioner seeks leave to leave withdraw this petition. The learned counsel for the Petitioner states that the other challenges to the impugned Circular may not be decided at this stage, but all issues in regard to such challenges may be kept open.

Accordingly, we grant leave to withdraw this petition and dispose of this petition as withdrawn. Further, we clarify that we are not examining the other challenges to the impugned Circular dated 7 January 2022 and all contentions of all parties in this regard are expressly kept open.

This petition is disposed in the above terms without any order for costs.

(Jitendra Jain, J.)

Signed by: Sayyed Saeed Ali Designation: PA To Honourable Judge Date: 17/07/2025 11:27:45

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