SC dismisses plea challenging SEBI rules

New Delhi: The Supreme Court on Wednesday dismissed as "infructous" a plea challenging the Finance Minister's power to nominate two members in the selection board for appointment of the Securities and Exchange Board of India (SEBI) Chairman and its full-time members.

The apex court passed the order after Attorney General Mukul Rohatgi told the court that Rule 3(5)(e) of Securities and Exchange Board of India (Terms and Conditions of Service of Chairman and Members) Rules, 1992 has been amended.

"Senior counsel appearing for the petitioners, submits that in the light of a Notification dated December 23, 2015 issued by the Government of India amending Rule 3(5)(e) of the Securities and Exchange Board of India (Terms and Conditions of Service of Chairman and Members) Rules, 1992, nothing further survives for consideration in this petition.

"Writ petition is hereby dismissed as infructuous," a bench headed by Chief Justice T S Thakur said.

At the outset, the court questioned on what grounds a PIL challenging the validity of the rules can be entertained and said such a petition is understandable when it is filed by a person who is directly aggrieved by such rules.

"You want us to strike down statutory rules? We have better work to do," the bench observed.

The apex court was hearing a plea filed by former IPS officer Julio Ribeiro and other members of civil society, alleging that the rules framed by the government were contrary to the SEBI Act.