JUDGMENT

Ganguly, J. —

1. The question which arises for consideration in this appeal is whether Section 11-B of the Securities and Exchange Board of India Act, 1992 (for short, ‘the Act’) could be invoked by the Chairman of the Securities and Exchange Board of India (for short, ‘SEBI’) in conjunction with Sections 4(3) and 11 for restraining the respondent from associating with any corporate body in accessing the securities market and prohibiting him from buying, selling or dealing in securities.

2. The factual background in which the present appeal arises is noted as under.

3. The respondent was appointed the Joint Managing Director of Trident Steel Limited (hereafter referred to as “the said Company) on or about 20th May 1993. The Board initiated certain preliminary investigations about the affairs relating to public issues by the said Company on the basis of a complaint received from a member of Bombay Stock Exchange (for short B.S.E.). The public issue of the said Company was of 52 lacs shares of Rs.10 each at a premium of Rs.3.50 per share aggregating to Rs.7 crore 2 lacs. The Lead Managers to the issue were Bank of Baroda and Apple Industries Limited. Such issues opened on 26