SECURITIES LAW
'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...
Cryptocurrency And Regulation Of Official Digital Currency Bill, 2021 And Legal Framework Ahead
A dubious concern in the banking finance sector in India today is the debate over according legal status to crypto/virtual currencies ("CCs"). The Reserve Bank of India ("RBI"), vide a notification[1] ("Notification"), directed all entities regulated by RBI not to deal in CCs or provide any services for facilitating any person in dealing or settling with CCs. As the blockchain enthusiasts, the crypto-exchanges and individuals holding CCs, across the globe watched in approbation, in March...
SEBI Penalizes Future Corporate For Insider Trading; Bars Founder Kishore Biyani From Securities Market For One Year
The Securities and Exchange Board of India has penalized Future Corporate Resources Pvt Ltd, Kishore Biyani and Anil Biyani, founder and co-founder of Future group respectively, and five others for insider trading.Future Corporate Resources Pvt Ltd(FCRL), Kishore Biyani, Anil Biyani and five others have been prohibited from dealing in securities market for a period of one year.Further, FCRL, Kishore Biyani and Anil Biyani have also been barred from dealing with the securities of Future...
Supreme Court Directs Distribution Of 9122 Crores To Unit Holders Under Franklin Templeton's Six Mutual Fund Schemes
The Supreme Court has on Tuesday directed that amount of 9122 crores that is cash ready with Franklin Templeton as on 15th January 2021 be distributed amongst the unit holders under the six mutual fund schemes. The Court has stated that the distribution is to be done in proportion to their respective interest in assets of scheme and will be undertaken by SBI Mutual funds as agreed by both Franklin Templeton Trust and SEBI. A division Bench of Justice Abdul Nazeer and Justice Sanjeev...