SEBI Cannot Reject Requests Affecting Rights Through Cryptic Communications: SAT Mumbai

The Mumbai Bench of the Securities Appellate Tribunal (SAT) on 8 July held that the Securities and Exchange Board of India (SEBI) cannot reject a request to withdraw an open offer through a cryptic communication, as any decision having civil consequences must be supported by reasons. Presiding Officer Justice P.S. Dinesh Kumar with Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar allowed the appeal filed by Marwadi Chandarana Intermediaries Brokers Ltd against SEBI's communication...

Former Lakshya Promoter Moves SAT Against SEBI's Approval Of Learnfluence Education IPO

Former Learnfluence Education Limited promoter Adheesh Damodaran has approached the Securities Appellate Tribunal challenging the Securities and Exchange Board of India's approval of the company's proposed Initial Public Offering (IPO). Learnfluence Education Limited operates the Lakshya Indian Institute of Commerce coaching platform.The appeal came up before a Bench comprising Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar. After...

SAT Rejects Chennai Society's Challenge To SEBI Order Clearing NSE Officials In Co-Location Case

The Securities Appellate tribunal (SAT) has dismissed an appeal by Chennai Financial Markets & Accountability seeking a fresh examination of alleged collusion between OPG Securities and NSE officials in the co-location case.It held that the society was not an "aggrieved person" entitled to invoke the tribunal's appellate jurisdiction. A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar passed the order. “Section 15T of the...

Director Cannot Evade Statutory Duties By Claiming Another Director Was In Charge: SAT Mumbai

The Securities Appellate Tribunal at Mumbai (SAT) on 15 June held that a company director cannot avoid statutory responsibility by claiming that another director was managing the company's affairs, while partly allowing an appeal concerning penalties imposed for failure to redress investor grievances. Presiding Officer Justice P.S. Dinesh Kumar and Members Meera Swarup and Dr. Dheeraj Bhatnagar partly allowed the appeal filed by Sanjay Dwivedi and Deepali Dwivedi against an adjudication order...

SAT Sets Aside SEBI's ₹50 Lakh Penalty On Citrus Check Inns Directors Over Violation Of Natural Justice

The Securities Appellate Tribunal (SAT) has set aside a ₹50 lakh penalty imposed by the Securities and Exchange Board of India (SEBI) on three directors of Citrus Check Inns Limited. It held that the adjudication proceedings were vitiated by a violation of the principles of natural justice due to improper service of notices. A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar allowed the appeals filed by Omprakash Basantlal Goenka,...

SAT Quashes 2010 SEBI Penalty Order Citing 13-Year Delay In Serving Adjudication Order

The Securities Appellate Tribunal (SAT) at Mumbai has set aside a 15-year-old penalty order passed by the Securities and Exchange Board of India (SEBI) against Prince Securities. The tribunal held that, in the facts of the case, any further continuation of proceedings pursuant to an adjudication order that remained unserved on the appellant for 13 years would amount to an abuse of process of law. A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr....

SAT Mumbai Rules Tax Refund Claim Outside Its Jurisdiction, Partly Allows “Pandya Ka Funda” Review

The Mumbai Securities Appellate Tribunal (SAT) on 8 May held that any claim seeking refund of income tax paid on trading gains forming part of disgorgement proceedings must be pursued separately under the Income Tax Act, 1961. Presiding Officer Justice P.S. Dinesh Kumar with Technical Members Meera Swarup and Dheeraj Bhatnagar partly allowed a review application arising from the “Pandya Ka Funda” stock manipulation case but declined to interfere with findings on fraudulent trading and...

SAT Slams SEBI For 'Sleeping Over' Shree Global Tradefin Case, Sets Aside Penalties Against 7 Entities

The Securities Appellate Tribunal (SAT) has set aside SEBI's penalties against seven entities in a case concerning alleged manipulation in the shares of Shree Global Tradefin Limited. It held that the regulator's action was hit by inordinate delay and deprecated SEBI for issuing a third show cause notice despite an earlier SAT ruling on similar grounds. The tribunal, comprising Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar, observed...

SAT Stays SEBI Order Directing Setco Automotive Promoters To Bring Back ₹208.77 Crore

The Securities Appellate Tribunal (SAT) has recently stayed SEBI's direction requiring Setco Automotive promoters to bring back ₹208.77 crore in an alleged fund diversion case, prima facie holding that a regulator cannot override lawful shareholder-approved business decisions. “In our view, shareholders' opinion and business decision, if they are lawful, cannot be substituted by the Regulator.” The interim relief was granted by Presiding Officer Justice P.S. Dinesh Kumar, Technical Member...

SAT Upholds BSE Rejection Of Jetking Share Listing Plea Over Crypto Investments

The Securities Appellate Tribunal (SAT) has upheld BSE's decision to return Jetking Infotrain Limited's listing application for shares issued through a preferential allotment. It held that the company's preferential fundraise and all subsequent actions, including investment in virtual digital assets (VDAs), before the amendment of its main objects clause were ultra vires its Memorandum of Association (MoA). A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera...

SAT Stays SEBI Debarment of Unison Metals MD, Says Market Ban For Sharing Public Shareholder Data 'Harsh'

The Securities Appellate Tribunal (SAT) has stayed a SEBI order debarring the Managing Director of Unison Metals Ltd. and two others from accessing the securities market, holding that the only allegation against them was sharing shareholder data that is otherwise publicly accessible. “We are of the prima facie opinion that in the interest of investors, the consequences of the impugned order can be deferred pending final hearing.” A bench of Presiding Officer Justice P.S. Dinesh Kumar and...

Missing Pages In PDF Filing Of Nam Securities' Financial Statements An Inadvertent Error: SAT Cuts BSE Penalty

The Securities Appellate Tribunal (SAT) in Mumbai on Thursday held that a defect in a PDF filing by Nam Securities Limited, where two pages were missing, was an inadvertent lapse and reduced the penalty imposed by BSE Limited from Rs 1.77 lakh to Rs 5,000 while partly allowing the company's appeal. A coram of Justice Presiding Officer P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar found that the lapse did not amount to a wilful violation of Regulation 33 of the...