Issuing the notice to the Indiabulls on the plea by market regulator, a three-judge bench headed by Chief Justice S H Kapadia asked the brokerage firm to file its reply.

Market regulator Securities and Exchange Board of India had on February 25, 2009, imposed a fine of Rs 15 lakh on Indiabulls Securities after finding that the firm indulged in manipulative and fraudulent practices in the Futures and Options (F&O) during January-March 2007.

Indiabulls Securities, however, had challenged SEBI's order before appellate tribunal SAT, which on October 26, 2010, had set aside SEBI's order after observing there was no fraudulent practice.

PTI