|Securities Appellate Tribunal
Penalty Proportionality in Broker Misconduct | Double Penalty on Gross Profit & Loss Violates Natural Justice: SAT
The Securities Appellate Tribunal struck down a ₹5.69 crore penalty imposed on M. Prasad & Co. for reversal trades with its sister concern, ruling that penalizing both gross profit and gross loss sides without proving intent constitutes double punishment. This sets a critical precedent for brokers and NBFCs: penalties must be calculated on net gains, not aggregate transaction volumes, ensuring fairness under securities regulation.