#Securities Appellate Tribunal

The SAT ruled that the conditions in sub-clauses (i)-(iii) of SEBI’s Regulation 27(1) bind not only the promoter’s direct entities but also borrowers, subsidiaries and associates linked to the promoter. This interpretation broadens the scope of prohibited rating assignments for credit rating agencies, exposing them to liability for ratings tied to any promoter-related borrowing.

The Securities Appellate Tribunal ruled that unregistered investment advisors cannot retain fees collected from clients, regardless of whether investors seek refunds. The decision underscores SEBI's power to enforce full restitution, reinforcing investor protection and regulatory compliance in securities advisory services.