The Supreme Court of India has overturned a ₹80 lakh penalty imposed on India’s two primary stock exchanges and the Securities and Exchange Board of India (SEBI) by the Bombay High Court. The penalty stemmed from the wrongful freezing of demat accounts belonging to two Mumbai residents who were mistakenly classified as promoters. The Supreme Court found that the Bombay High Court erred in its judgment and directed it to rehear the case, ensuring a fair process for all parties involved.