SEBI Cannot Pass Multiple Orders on Same Issue : Supreme Court

The Supreme Court held that SEBI cannot pass more than one final order on the same issue or dispute.

In 2014, SEBI passed an order against Vital Communications Ltd for regulatory violations. This order became final as it was not appealed. However, in 2018, SEBI issued a fresh order directing the company to repay unlawful gains.

The company challenged it, citing the principle of res judicata.

The Securities Appellate Tribunal sided with the company, and the Supreme Court upheld this view, stating that once an order attains finality, SEBI cannot reopen the same matter and issue another order.