36. The correctness of the submission can also be examined in a different
angle, namely, what is the paramount purpose for which the SEBI Act,
1992 came to be enacted? The object of the main Act itself came to be
considered by this Court in a recent decision reported in Sahara India
Real Estate Corporation Ltd. (supra) wherein this Court has stated as
under:-
The wide sweep of the powers of SEBI leaves no manner of doubt that it
is the supreme authority for the control and regulations and orderly
development of the securities market in India. It would not be mere
rhetoric to state that in this era of globalisation, the importance of
the functions performed by SEBI are of paramount importance to the
well being of the economic health of the nation. Therefore, Mr.
Bhushan is absolutely correct in emphasising that the Chairman of SEBI
has to be a person of high integrity. This is imperative and there are
no two ways about it. The importance of the functions performed by
SEBI has been elaborately examined by this Court in the case of Sahara
India Real Estate Corporation Ltd. & Ors. Vs. Securities and Exchange
Board of India & Anr.[4] Justice Radhakrishnan, upon examination of
the various provisions of the SEBI Act, has observed that it is a
special law, a complete code in itself containing elaborate provisions
to protect interest of the investors. The paramount duty of the Board
under the SEBI Act is to protect the interest of the investors and to
prevent unscrupulous operators to enter and remain in the securities
market. It is reiterated in paragraph 67 that SEBI is also duty bound
to prohibit fraudulent and unfair trade practice relating to
securities markets. Similarly, Justice Khehar in the concurrent
judgment has emphasised the importance of the functions performed by
SEBI in exercise of its powers under Section 11. In paragraph 303.1,
it is observed as follows :-