Case Law Analysis
|Securities Appellate Tribunal
SEBI Act Section 15A | Director Not Liable for Post-Resignation Violations Without Continued Control or Active Participation : SAT
The Securities Appellate Tribunal ruled that a director who has properly resigned cannot be penalized for post-resignation misconduct unless they retained de facto control or actively participated in the violations. This clarifies the boundary of accountability for former directors and protects compliant exiters from retrospective liability under SEBI’s enforcement regime.