The statutory provisions governing the field provide for a transparent mechanism of delisting the securities, adequate participation and/ or representation of public shareholders in the process of delisting, and a remedy is also available to aggrieved investor in the matter of delisting. Even in case of compulsory delisting, an aggrieved investor may file an Appeal before the SAT against the decision of the recognized stock exchange delisting the securities under Section 21A(2) of the SCRA.

JUDGMENT

Satish Chandra Sharma, C.J.

1. The present petition has been filed as a public interest litigation by the Petitioner Atul Aggarwal who is holding a Bachelor's Degree in Law stating that he is espousing the cause millions of investors who are being duped by the unscrupulous promoters of the companies as the promoters of the companies vanish after siphoning off the hard-earned money of the investors.

2. The Petitioner's contention is that the Respondent No.3 BSE is empowered under the statutory provisions to list or to suspend the trading of shares/ stocks/ securities and the listed companies on the stock exchange keeping in view Rule 19(5) of the Securities Contracts (Regulation) Rules, 1957 and the power to suspend the listed company is being arbitrarily used by Respondent No.3 being the stock exchange, merely on the grounds of non-compliance of procedural disclosures under listing agreement, non- payment of the listing fees etc. and the shares/ stocks/ securities of the listed companies have been suspended from time to time.

3. It has been stated that large number of companies have been suspended from continued listing by Respondent No.3 and subsequently many of them have been de-listed without ensuring any protection to investors and, therefore, appropriate mechanism should be in place to take action against those persons who are duping the investors.

4. It has been further stated that the Respondent No.2 is the apex regulatory body and the Securities and Exchange Board of India Act, 1992 (SEBI Act) was enacted to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto.

5. It has been further stated that according to Section 11 of the SEBI Act, it shall be the duty of SEBI to protect the interest of public investors in securities and to promote the development of and to regulate the securities market by such measures as it thinks fit. The SEBI Act also empowers the Board to regulate the business in Stock Exchanges, to register and regulate the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisors, etc to register and regulate the working of collective investment schemes including mutual funds, to prohibit fraudulent and unfair trade practices and insider trading, to regulate take-overs, to conduct enquiries and audits of the stock exchanges.

6. It has been further stated that Respondent No.3 BSE is recognized by Respondent No.1 Union of India under the provisions of Section 4(1) of Securities Contracts (Regulation) Act, 1956 for providing trading facilities for stock brokers and traders to trade shares/ stocks and other securities and also provides facilities for the issue and redemption of securities as well as other financial instruments. The Petitioner has stated that Respondent No.3 has de-listed large number of companies. It has been stated on affidavit that shares/ stocks of as many as 464 companies has been arbitrarily and without any efforts on the part of the Bombay Stock Exchange have been de-listed.

7. The Petitioner has raised various grounds before this Court to protect the interest of investors and has prayed for the following reliefs:

"i. Issue appropriate writ(s), order(s) or direction(s) in the nature of a writ of mandamus directing the Respondent No.2 to issue the directions to Respondent No.3 making mandatory the provisions like purchase of shares/ stocks/ securities by promoters of a company, proposed to be suspended, from its investors or any such alternative as a pre-condition of initiating the suspension of trading of shares/ stocks/ securities procedure by the Stock Exchanges;

ii. Issue appropriate writ(s), order(s) or direction (s) in the nature of a writ of mandamus directing the Respondent No. 2 to issue the direct