Highlights
- Ashwani Bhatia, Whole Time Member of the Securities and Exchange Board of India, emphasized the critical role of quasi-judicial orders in protecting investor interests and maintaining confidence in the capital markets during his keynote address at the Economic Times Global Legal Convention and Awards 2025.
- Bhatia revealed that approximately 1,400 quasi-judicial orders were issued by the Securities and Exchange Board of India in the financial year 2024, with about 92% of appeals upheld by the Securities Appellate Tribunal and 77% by the Supreme Court.
- Encouraging collaboration within the legal community, Bhatia advocated for a principle-based, self-regulated securities market, highlighting the importance of transparency, accountability, and mental health for legal professionals.
Ashwani Bhatia, Whole Time Member of the Securities and Exchange Board of India (SEBI), delivered the keynote address at the 2nd Edition of the Economic Times Global Legal Convention and Awards 2025. He discussed on SEBI’s enforcement mechanisms and the critical role of quasi-judicial orders in protecting investor interests and confidence in the capital markets.
Reflecting on his four-decade-long career that began in 1985, Bhatia shared his unique journey from a career banker to a key figure in India’s financial regulatory ecosystem. “I started as a banker, served in the banking industry for 37 years, and for the past three years, I have been a regulator. It’s been an interesting journey where protecting investors through quasi-judicial orders has become one of the most meaningful aspects of my work,” he said.
Bhatia emphasized the importance of SEBI’s quasi-judicial functions, which entail hearing alleged offenders of securities laws, assessing evidence, and issuing remedial directions. He highlighted that SEBI operates within a procedural framework ensuring impartiality and fairness. “Every day, I consciously detach myself from my other responsibilities to approach cases with the objectivity of a judge,” he remarked.
The Whole Time Member underscored SEBI’s enforcement performance, revealing that the regulator issued approximately 1,400 quasi-judicial orders in the financial year 2024. Notably, around 92% of appeals against SEBI’s orders before the Securities Appellate Tribunal (SAT) and approximately 77% of appeals before the Supreme Court were upheld.
Bhatia shared eye-opening examples of corporate wrongdoings, including fictitious sales and purchases, circular transactions, and fraudulent disclosures. One striking case involved a single dollar’s worth of shares ballooning to a valuation of $328 million due to fraudulent market practices. “The stock market is often populated by individuals who know the price of everything but the value of nothing,” he observed.
He also pointed out SEBI’s proactive role in intervening in cases of financial statement manipulation, diversion of funds, and misrepresentation of order books, preserving approximately ₹22,000 crore in investor wealth through recent orders.
Addressing the legal fraternity, Bhatia advocated for a collaborative ecosystem where market participants prioritize transparency, accountability, and ethical conduct. “A principle-based, self-regulated securities market is every regulator’s dream,” he said, emphasizing that SEBI should be seen as a “frenemy” of the market — more friend than foe.
He encouraged the legal community to work towards minimizing the transaction cost of regulation through self-regulation and compliance. Bhatia also touched upon the importance of mental health, urging lawyers to maintain work-life balance and get sufficient rest.
Concluding on a lighter note, Bhatia recommended the audience listen to Frank Sinatra’s iconic song “My Way,” calling the song his anthem. “Do it your way. Do it well,” he added.
He was speaking at the Economic Times LegalWorld’s 2nd Edition of the Global Legal Convention and Law Awards 2025, a premier event celebrating excellence, innovation, and leadership in the legal industry in Mumbai.
The convention aimed to bring together legal professionals, thought leaders, and policymakers from around the globe.
