SECURITIES LAW
'What Does He Know?' : Delhi High Court Slams 19-Year Old Petitioner Who Alleged SEBI Irregularities In IPO Approvals
The Delhi High Court today slammed a petitioner for alleging that the Securities and Exchange Board of India (SEBI) is approving IPOs (initial public offerings) in a hasty manner, without proper scrutiny.Noting that the Petitioner, who sought the constitution of a fresh body for IPO approvals, was aged merely 19 years and there was little to no likelihood of his understanding the complexities of a securities market, the Division Bench of Chief Justice DN Patel and Justice Jyoti Singh...
Hindustan Zinc Disinvestment Case: Supreme Court Commences Hearing
The Supreme Court on Monday commenced hearing on the plea by National Confederation of Officers' Associations of Central Public Sector Undertakings and one more petitioner in the Hindustan Zinc disinvestment case.Advocate Prashant Bhushan opened the arguments for the petitioners, telling the bench of Justices D. Y. Chandrachud and B. V. Nagarathna how the Metal Corporation of India was nationalised by an Act of Parliament in 1965 and incorporated as Hindustan Zinc. "The Act of the Parliament...
BREAKING: SEBI Imposes Rs 3 Lakh Penalty On Raj Kundra, Shilpa Shetty, Viaan Industries For Violating Insider Trading Norms
The Securities and Exchange Board of India has imposed a penalty of Rs 3 lakhs on Viaan Industries and its promoters Shilpa Shetty and her husband Raj Kundra for violating SEBI (Prohibition of Insider Trading) Regulations, 2015.The order was passed based on an investigation into the tradings of the company listed in Bombay Stock Exchange during the period 2013- 2015.On October 29, 2015, VIL made a preferential allotment of 5,00,000 equity shares to four persons and in the said...
'Public Should Not Be Cheated' : Supreme Court Records Franklin Templeton Will Not Launch Any New Debt Scheme Till Disposal Of Appeal Before SAT
The Supreme Court on Monday recorded that Franklin Templeton Asset Management India Pvt Ltd will not launch any new debt scheme till disposal of its appeal pending before the Securities Appellate Tribunal, Mumbai.The appeal being referred to here has been filed before the SAT against the order dated June 7, 2021 passed by Whole Time Member of the Securities and Exchange Board of India holding that Franklin Templeton has violated certain provisions of the SEBI (Mutual Funds) Regulations, 1996 and...
"Due Deference Must Be Given To SEBI's Opinion": Supreme Issues Court Guidelines For Compounding Offences Under Section 24A SEBI Act
The Supreme Court laid down certain guidelines for Securities Appellate Tribunal ("SAT") in the matter of adjudicating an application for compounding of the offence under Section 24A of Securities and Exchange Board of India Act, 1992.The bench comprising Justices DY Chandrachud and MR Shah observed that though the consent of the SEBI for the compounding is not mandatory Court, it must give due deference to opinion. SAT or the Court must have cogent reasons to differ from the opinion provided...
SEBI Has Power To Regulate Winding-Up Of Mutual Fund Schemes To Protect Investors : Supreme Court
The Supreme Court has held that that the Securities and Exchange Board of India has the power to intervene in case of violations and incorrect decisions taken by trustees to wind-up schemes, as well as to prevent any intermediary from behaving in a manner that may be detrimental to investors.A bench comprising Justices S Abdul Nazeer and Sanjiv Khanna held so in the case relating to the winding up of Franklin Templeton schemes.Citing Section 11 of the SEBI Act, the judgement authored by...
SEBI Act Section 24A: SEBI To Be Heard By Courts In Compounding Offences Even If Its Consent Not Mandatory, Observes Supreme Court
"The SEBI is not a regular complainant, it is the custodian of the investors' interests, it is a regulatory body! Great importance has to be accorded to SEBI in compounding offences. But to lift it to a point where without its consent, there can be no compounding and where the SEBI can veto any compounding, I have my doubts", expressed Justice DY Chandrachud on Wednesday.The bench of Justices Chandrachud and MR Shah was considering an SLP arising out of an April, 2019 order of the Delhi High...
BREAKING : SEBI Imposes ₹ 25 Crore Penalty On Mukesh Ambani, Anil Ambani & Family For Irregularities In RIL Shareholding
The Securities and Exchange Board of India has imposed a penalty of Rupees 25 Crores on prominent members of the Reliance family Mukesh Ambani, Anil Ambani, Nita Ambani, Tina Ambani and few other individuals.The penalty has been imposed for violations of the provisions of Regulation 11(1) of the Takeover Regulations over irregularities relating to the issue of 12 crore equity shares in January 2000 by Reliance Industries Ltd at a price of Rs.75 per share to 38 allottee entities.The...
BREAKING : SEBI Imposes ₹ 25 Crore Penalty On Mukesh Ambani, Anil Ambani & Family For Irregularities In RIL Shareholding
The Securities and Exchange Board of India has imposed a penalty of Rupees 25 Crores on prominent members of the Reliance family Mukesh Ambani, Anil Ambani, Nita Ambani, Tina Ambani and few other individuals.The penalty has been imposed for violations of the provisions of Regulation 11(1) of the Takeover Regulations over irregularities relating to the issue of 12 crore equity shares in January 2000 by Reliance Industries Ltd at a price of Rs.75 per share to 38 allottee entities.The...
Breaking: Supreme Court Stays Recovery Of Rs. 27 Cr Penalty Imposed On NDTV, Prannoy Roy And Radhika Roy By SEBI
The Supreme Court on Friday stayed the recovery of the penalty of Rs 27 crore imposed by the SEBI on December 24, 2020 on NDTV promoters, Prannoy Roy and Radhika Roy, as well as on their holding company for allegedly violating various securities norms by concealing information from shareholders regarding certain loan agreements.The bench of Justices DY Chandrachud and MR Shah also directed the appellants cooperate in the expeditious disposal of the appeals against the SEBI order by the SAT,...
Supreme Court Stays SAT Order Setting Aside SEBI Penalty On SBI, Bank Of Baroda, LIC In UTI AMC Case
The Supreme Court on Friday directed a stay on the order of Securities Appellate Tribunal whereby it set aside market regulator SEBI's order imposing fine of 10 lakh each on State Bank of India, Bank of Baroda and LIC for failing to reduce their stakes to below 10% in UTI Asset Management Company.A division Bench of Justice Nageswara Rao and Justice Ravindra Bhat have also issued notice to the three financial institutions, in an appeal filed by the Securities and Exchange Board of India...
Franklin Templeton Case: Supreme Court Approves Distribution Mechanism Of SBI Mutual Fund And SBI Funds Management
The Supreme Court on Tuesday approved the application filed by SBI Mutual Fund and SBI Funds Management Pvt Ltd, for placing on record the distribution mechanism proposed to be followed while distributing Franklin Templeton's 9122 crores amongst its unit holders, under the six mutual fund schemes. The application has followed the top Court's last order whereby it had directed SBI Mutual Funds to undertake the distribution, dividing the amount amongst unit holders, in proportion to their...