NCLT Mumbai Sanctions Vedanta Demerger Plan

The National Company Law Tribunal (NCLT) at Mumbai on Tuesday sanctioned Vedanta Ltd's demerger, approving the restructuring scheme under which the metal and mining conglomerate will split its businesses into separate sector focused entities. The order was pronounced by a bench comprising Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh. "From the material on record, the Scheme appears to be fair and reasonable and is not violative of any provisions of law and is not...

SEBI Penalty Levied After Commencement Of Liquidation Not Admissible As Claim: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Friday held that penalties imposed by the Securities and Exchange Board of India (SEBI) after the commencement of liquidation cannot be admitted as claims under the Insolvency and Bankruptcy Code, rejecting SEBI's Rs 21.80 lakh claim against Annies Apparel Pvt. Ltd. A bench comprising Chaiperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “When the claim had not arisen or crystallised on the liquidation...

Supreme Court Rejects CA's Plea Against Mutual Funds 'Sahi Hai' Ads

The Supreme Court today dismissed a challenge to Bombay High Court's dismissal of a PIL against endorsement of mutual funds through advertisements like 'Mutual Funds Sahi Hai' and 'Mutual Funds mein SIP sahi hai'.A bench of Justices Vikram Nath and Sandeep Mehta passed the order, after hearing petitioner-Chandrakant C Shah in-person.The petitioner argued that the High Court found an element of public interest at first and issued notice in the matter, but subsequently, it "hastily" dismissed the...

SAT Upholds SEBI Order Against Linde India, Says All Related Party Deals Must Be Aggregated For Materiality

The Securities Appellate Tribunal (SAT) has upheld a July 2024 SEBI order directing Industrial gas supplier company Linde India Ltd to aggregate all related-party transactions (RPTs) with a single related party in a financial year to determine materiality and to undergo a valuation of business allocated under a joint venture agreement. A coram of Presiding Officer Justice PS Dinesh Kumar and Technical Members Meera Swarup and Dheeraj Bhatnagar dismissed Linde India's appeal on...

SEBI Cracks Down On Finfluencer Avadhut Sathe, Impounds ₹546 Crore For Providing Unregistered Investment Advice

The Securities and Exchange Board of India (SEBI) has banned finfluencer Avadhut Sathe from the securities market and impounded Rs 546.16 crore of unlawful gains after finding that he was providing unregistered investment advisory services in the garb of stock market education. SEBI also found that many participants who acted on his instructions suffered losses, while Sathe himself often did not take the same trades. In an interim order passed by Whole Time Member Kamlesh C. Varshney, SEBI also...

SEBI Acted With 'Due Care And Caution' In Clearing WeWork India IPO: Bombay High Court

The Bombay High Court on Monday observed that SEBI had exercised “due care and caution” in clearing the WeWork India IPO, while dismissing two petitions that alleged the regulator failed to act on complaints of inadequate disclosures in the offer documents of the Indian arm of global co-working space brand. A division bench of Justice RI Chagla and Farhan P Dubash said it was “satisfied that SEBI has indeed exercised due care and caution and complied with the legal requirements, including...

Bombay High Court Dismisses Plea Challenging WeWork India IPO, Imposes ₹1 Lakh Cost On Petitioner

The Bombay High Court on Monday dismissed two petitions challenging the IPO of WeWork India, bringing an end to an attempt by two retail investors to stop or modify the company's public issue over allegations of inadequate disclosures.A division bench of Justice R I Chagla and Justice Farhan A Dubash dismissed the petition filed by an invetsor Hemant Kulshreshtha with no order as to costs, while the petition filed by another investor Vinay Bansal was dismissed with a cost of Rs 1 lakh, to be...

SEBI Penalises Reliance Securities ₹5 Lakh For Cyber Security Lapses Found During Investigation

The Securities and Exchange Board of India (SEBI) on Wednesday imposed a penalty of Rs 5 lakh on Reliance Securities Limited after the regulator found several violations of cyber security and cyber resilience norms during an inspection covering April 01, 2023 to October 31, 2024. The order, passed by Adjudicating Officer Amit Kapoor, said the brokerage failed to comply with critical safeguards, including capacity planning, automated software testing, log preservation, disaster recovery...

Bombay High Court Sets Aside ₹27 Crore Deposit Condition For Former Stock Broker Ketan Parekh To Travel Abroad

The Bombay High Court has recently quashed an order directing former stockbroker Ketan Parekh, who is facing prosecution arising from alleged large-scale manipulation of the securities market in the late 1990s and early 2000s, to deposit Rs 27.06 crore as a condition for travelling abroad. A single bench of Justice N J Jamadar held that the Special Court's direction lacked a reasonable nexus with ensuring Parekh's presence at trial. The court observed, “A direction for deposit of the said...

Dish TV Settles SEBI Case, Pays Rs 11.7 Lakh Over Jawahar Lal Goel's Unauthorized Continuation On Board

Dish TV India Limited has settled adjudication proceedings, initiated by the Securities and Exchange Board of India (SEBI) by paying Rs 11.7 lakhs, over the unauthorized continuation of Jawahar Lal Goel, a non-executive director on its board without shareholder approval, a breach of listing regulations.SEBI Adjudicating Officer Sudeep Mishra closed the adjudication proceedings on November 14 accepting the settlement sought by Dish TV. This allows Dish to close the proceedings against the...

SEBI Imposes Rs 3 Lakh Penalty On Mediaone's Merchant Banker For Due Diligence Lapses In Open Offer

The Securities and Exchange Board of India (SEBI) has imposed a Rs 3 lakh penalty on merchant banker Kunvarji Finstock Private Limited for lapses in due diligence and disclosure during an open offer involving Chennai-based media company Mediaone Global Entertainment Limited.Mediaone operates across film production, distribution, theatre management, television content, and event management, producing content in multiple languages including Tamil and Hindi. Notable films produced by the company...

Penalty Imposed By SEBI After Commencement Of Insolvency Cannot Be Admitted As Claim During CIRP: NCLT Mumbai

The NCLT, Mumbai Bench, comprising Anil Raj Chellan (Member-Technical) and K.R. Saji Kumar (Member-Judicial), has held that the penalty imposed by the SEBI post insolvency commencement cannot be admitted as a claim during CIRP. The CIRP of the corporate debtor (Medybiz Private Limited) was going on, and a moratorium was in effect. The last date of filing the claim was 22.08.2024; however, on 22.08.2024, SEBI imposed a penalty of Rs. 25 Cr. on the corporate debtor. The resolution...