Kotak Securities Limited Through Its Authorized Representative Sandeep Gupta v. National Stock Exchange Of India Limited

2025:BHC-OS:11013-DB Sayyed 2-WP.25.2024.docx IN IN THE THE HIGH HIGH COURT COURT OF OF JUDICATURE JUDICATURE AT AT BOMBAY BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.25 OF 2024 WRIT PETITION NO.25 OF 2024 Kotak Securities Limited Kotak Securities Limited through its authorized through its authorized Representative, Mr. Sandeep Gupta Representative, Mr. Sandeep Gupta ...

...Petitioner

Petitioner

Versus

Versus

National Stock Exchange of India National Stock Exchange of India Limited & Ors.

Limited & Ors.

...

...Respondents

Respondents _____________________________________________________ Mr. Rohaan Cama a/w Ms. Sherna Doongaji, Mr. Akilesh Menezes, Mr. Rohaan Cama a/w Ms. Sherna Doongaji, Mr. Akilesh Menezes, Mr. Himanshu Kalwani & Ms. Kashish Bhatia i/by AZB & Partners for Mr. Himanshu Kalwani & Ms. Kashish Bhatia i/by AZB & Partners for the Petitioner.

the Petitioner.

Mr. Vivek Shah a/w Ms. Shruti Rajan & Mr. Anubhav Ghosh i/by Mr. Vivek Shah a/w Ms. Shruti Rajan & Mr. Anubhav Ghosh i/by Trilegal for Respondent No.1-NSEI.

Trilegal for Respondent No.1-NSEI.

Mr. Rafique Dada, Senior Advocate a/w Mr. Nishit Dhruva, Ms. Khushbu Mr. Rafique Dada, Senior Advocate a/w Mr. Nishit Dhruva, Ms. Khushbu Chhajed & Mr. Harsh Sheth i/by MDP Legal for Respondent No.2-SEBI. Chhajed & Mr. Harsh Sheth i/by MDP Legal for Respondent No.2-SEBI. Adv. Jeel Shah a/w Ms. Seema Gupta i/by Mr. Ashish Mehta for Adv. Jeel Shah a/w Ms. Seema Gupta i/by Mr. Ashish Mehta for Respondent No.3-UOI.

Respondent No.3-UOI.

_____________________________________________________ CORAM :

M. S. Sonak & Jitendra Jain, JJ.

DATED : 16 July 2025 PC.:- 1.

Heard learned counsel for the parties.

Heard learned counsel for the parties.

2.

The Petitioner had filed this petition, The Petitioner had filed this petition, inter alia inter alia challenging challenging Circular No.02/2022 dated 7 January 2022 issued by the National Stock Circular No.02/2022 dated 7 January 2022 issued by the National Stock Exchange of India Limited (NSEIL) (Respondent No.1) to the extent, Exchange of India Limited (NSEIL) (Respondent No.1) to the extent, according to them, it had travelled beyond the scope of certain Rules of according to them, it had travelled beyond the scope of certain Rules of the Securities Contracts (Regulation) Rules, 1956 (SCR Rules). The the Securities Contracts (Regulation) Rules, 1956 (SCR Rules). The Petitioner had also challenged the order dated 13 October 2023 passed Petitioner had also challenged the order dated 13 October 2023 passed by NSEIL (Respondent No.1) by which penalty was imposed on the by NSEIL (Respondent No.1) by which penalty was imposed on the Petitioner.

Petitioner.

Sayyed 2-WP.25.2024.docx 3.

The learned counsel for the Petitioner now submits that the The learned counsel for the Petitioner now submits that the SCR Rules have now been amended on 19 May 2025. Further, the SCR Rules have now been amended on 19 May 2025. Further, the NSEIL has issued a Circular dated 10 June 2025 to amend the NSEIL has issued a Circular dated 10 June 2025 to amend the impugned Circular No.02/2022 dated 7 January 2022. impugned Circular No.02/2022 dated 7 January 2022. 4.

Further, it is pointed out that the Member Committee of Further, it is pointed out that the Member Committee of NSEIL has made an order dated 15 July 2025, taking cognisance of the NSEIL has made an order dated 15 July 2025, taking cognisance of the amendment to the Rules and the impugned Circular, and based upon amendment to the Rules and the impugned Circular, and based upon the same acknowledged that the penalty imposed by the impugned the same acknowledged that the penalty imposed by the impugned order of 13 October 2023 no longer survives, and stands superseded. order of 13 October 2023 no longer survives, and stands superseded. 5.

The order dated 15 July 2025 is taken on record. The order dated 15 July 2025 is taken on record. 6.

Paragraph 8 of the order dated 15 July 2025 reads as follows:- Paragraph 8 of the order dated 15 July 2025 reads as follows:- "8. Given the findings as mentioned above, the Committee decided "8. Given the findings as mentioned above, the Committee decided that the directions contained in the Order no longer subsist and the that the directions contained in the Order no longer subsist and the penalty amount does not survive. This review order supersedes the penalty amount does not survive. This review order supersedes the earlier order."

earlier order."

7.

Given the above developments, the Petitioner seeks leave to Given the above developments, the Petitioner seeks leave to leave withdraw this petition. The learned counsel for the Petitioner leave withdraw this petition. The learned counsel for the Petitioner states that the other challenges to the impugned Circular may not be states that the other challenges to the impugned Circular may not be decided at this stage, but all issues in regard to such challenges may be decided at this stage, but all issues in regard to such challenges may be kept open.

kept open.

8.

Accordingly, we grant leave to withdraw this petition and Accordingly, we grant leave to withdraw this petition and dispose of this petition as withdrawn. Further, we clarify that we are not dispose of this petition as withdrawn. Further, we clarify that we are not examining the other challenges to the impugned Circular dated 7 examining the other challenges to the impugned Circular dated 7 January 2022 and all contentions of all parties in this regard are January 2022 and all contentions of all parties in this regard are expressly kept open.

expressly kept open.

9.

This petition is disposed in the above terms without any order This petition is disposed in the above terms without any order for costs.

for costs.

(Jitendra Jain, J.) (M. S. Sonak, J.) Signed by: Sayyed Saeed Ali Designation: PA To Honourable Judge Date: 17/07/2025 11:27:45