Hon'ble Judges/Coram:
Dr. D.Y. Chandrachud and M.R. Shah

JUDGMENT

Dr. D.Y. Chandrachud, J.

This judgment has been divided into Sections to facilitate analysis. They are:

A. The Appeal

1. The Appellant is being prosecuted for an offence Under Section 24(1) of the Securities and Exchange Board of India Act, 1992 ("SEBI Act"). The Appellant sought the compounding of the offence Under Section 24A. By an order dated 15 November 2018, the Additional Sessions Judge - 02 Central District at Tis Hazari Courts, Delhi ("Trial Judge"), rejected the application, upholding the objection of the Securities and Exchange Board of India that the offence could not be compounded without its consent. By a judgment of a Single Judge of the High Court of Delhi dated 1 April 2019 the order of the Trial Judge has been affirmed in revision. The High Court has held that the trial has reached the stage of final arguments and the application for compounding cannot be allowed without Securities and Exchange Board of India's ("SEBI") consent. The reasons of the High Court are extracted below:

6. Compounding at the initial stage has to be encouraged, but not at the final stage. The object of the SEBI Act has to be kept in mind. A stable and orderly functioning of the securities market has to be ensured. It will not be in the interest of justice to discharge the Accused at the final stage o........