1. This appeal under S.15Z of the Securities & Exchange Board of India Act, 1992 (for brevity, 'the SEBI Act') has been preferred by the Securities & Exchange Board of India (for brevity, 'the SEBI') to challenge the judgment and order dated 14.08.2006 passed by the learned Securities Appellate Tribunal (hereinafter referred to as 'the SAT') in Appeal No.56 of 2004.

2. The substantial question of law falling for determination involves interpretation of the term 'annual turnover' as it finds mention in the Explanation after paragraph 3 of Schedule III to the Securities & Exchange Board of India (Stock Brokers & Subbrokers) Regulations, 1992 (for brevity, 'the Regulations'). The aforesaid Explanation reads as follows :
“Explanation. - For the purpose of paragraphs 1, 2 and 3, “annual turnover” means the aggregate of the sale and purchase prices of securities received and receivable by the stock broker on his own account as well as on account of his clients in respect