Quasi-Judicial Authority Has To Disclose Material That Has Been Relied Upon At The Stage Of Adjudication: Supreme Court

The Supreme court observed that a quasi-judicial authority has a duty to disclose the material that has been relied upon at the stage of adjudication.Keeping a party bereft of the information that influenced the decision of an authority undertaking an adjudicatory function undermines the transparency of the judicial process, the bench comprising Justices DY Chandrachud and Sanjiv Khanna observed. The court added that an ipse dixit of the authority that it has not relied on certain material would...

'Siphoned Off Funds Of RHFL To Other Financially Weak Promoter Group Companies': SEBI Bars Anil Ambani, Reliance Home Finance Ltd From Securities Market

The Securities and Exchange Board of India on Friday (February 11) barred Reliance Home Finance Ltd, industrialist Anil Ambani and three other individuals from dealing with the securities market directly or indirectly for allegedly siphoning off funds from the company. The market regulator passed the interim order based on investigation into the loans which were disbursed by RHFL during the period of 2018-19 to several borrowing entities. The root of the proceedings were traced to multiple...

Analysis Of Recent Changes In The RPT Framework Vis-À-Vis SEBI (LODR) (Sixth Amendment) Regulations, 2021

On September 28, 2021, SEBI in its Board meeting approved changes in the Related Party Transaction ('RPT') framework under the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015 ("LODR").[1] The changes were based on the recommendations of the Working Group,[2] constituted in November 2019, to review the policy space pertaining to related party transactions. The approved changes in the form of SEBI (LODR) (Sixth Amendment) Regulations, 2021 were notified on...

Remarks Of 'Judicial Dishonesty' Against SEBI's Adjudicating Officer By SAT: Supreme Court Stays Remarks In SEBI's Plea

The Supreme Court of India on Monday stayed the Securities Appellate Tribunal's remarks of 'judicial dishonesty' against SEBI's Adjudicating Officer with regard to SEBI's investigation into irregular trading activities. The Court has also stayed SAT's direction dated 16th December 2021 that a reply be filed by SEBI sworn by the Adjudicating Officer himself and a subsequent order of 23rd December requiring the Officer to be present before it.A Bench comprising Justice Vineet Saran and...

SEBI Cracks Whip On Stock Price Manipulation Through Telegram, WhatsApp Groups; Bars 6 Persons From Securities Market

The Securities and Exchange Board of India has cracked down on WhatsApp and Telegram groups in which stock-tips were being shared to inflate share prices. In an interim order, the market regulator has barred six individuals from accessing the securities market, after making a prima facie finding that they had indulged in fraudulent and unfair trade practices by making baseless stock recommendations through social media groups.In 2021, the SEBI had initiated an investigation on complaints that...

Overview Of The Recent Regulatory Changes Concerning Alternative Investment Funds In India

The Securities Exchange Board of India (hereinafter referred to as "SEBI") has recently amended the Alternative Investment Funds Regulations, 2012 (hereinafter referred to as the "AIF Regulations") to inter alia, require filings for placement memorandums with SEBI to be done through a SEBI registered merchant banker effective November 11, 2021. Further, vide its circular dated October 21, 2021 ("Circular"), SEBI has issued the modalities for such filings including the obligations of the...

'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...