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...

SAT Reduces SEBI Ban On Riddhi Siddhi Gluco Biols, Promoters To 6 Months, Upholds MPS, Fraud Findings

The Securities Appellate Tribunal (SAT) has reduced the debarment imposed by the Securities and Exchange Board of India (SEBI) on Riddhi Siddhi Gluco Biols Ltd., its Chairman and Managing Director Ganpatraj Chowdhary, and several connected entities. The Tribunal partly modified SEBI's order by reducing the period of debarment, which had been imposed for longer durations by SEBI, to six months for Riddhi Siddhi Gluco Biols Ltd, its promoters including Ganpatraj Chowdhary and certain connected...

SAT Upholds SEBI Order Directing Sahara Group Firm SICCL To Refund ₹14,106 Crore Raised Through OFCDs

The Securities Appellate Tribunal (SAT) at Mumbai on Monday dismissed appeals filed by Sahara India Commercial Corporation Limited (SICCL) and its directors challenging SEBI's directions to refund Rs 14,106 crore raised from nearly 1.98 crore investors through Optionally Fully Convertible Debentures (OFCDs). A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar passed the order. It observed, “We have already held that the issue was...

SAT Sets Aside SEBI Disgorgement Order Against Kotak AMC Over Mutual Fund Investments In Essel Entities

The Securities Appellate Tribunal (SAT) on Friday partly allowed appeals filed by Kotak Mahindra Asset Management Company, its Trustee Company and certain officials against SEBI orders directing refund of part of the investment management and advisory fees collected from investors in six close-ended debt mutual fund schemes known as Fixed Maturity Plans (FMPs), and imposing monetary penalties over investments made in Essel Group entities. A coram of Presiding Officer Justice P.S. Dinesh Kumar...

SAT Dismisses Former IndusInd Bank Director's Plea For Full SEBI Probe Records In Insider Trading Case

The Securities Appellate Tribunal (SAT) on Thursday dismissed an appeal filed by former IndusInd Bank Whole Time Director Arun Khurana challenging communications issued by the Securities and Exchange Board of India refusing complete inspection of investigation material in an ongoing insider trading probe. A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar held that since the matter had not yet reached the adjudication stage, the...

SAT Upholds ₹5 Lakh Penalty on Som Distilleries for Misleading Disclosure On ₹100 Crore Fund Raise

The Securities Appellate Tribunal has recently upheld a Rs 5 lakh penalty on Som Distilleries & Breweries Ltd, holding that the company failed to clearly inform investors that it had dropped a proposed Rs 100 crore preferential issue after initially citing “unforeseen circumstances” for cancelling a shareholders' meeting.A bench of Presiding Officer Justice P.S. Dinesh Kumar, Technical Member Meera Swarup and Technical Member Dr. Dheeraj Bhatnagar dismissed the company's appeal against...

SAT Holds Unlisted Company's Allotment To 284 Investors Across Multiple Offers Was Deemed Public Issue

The Securities Appellate Tribunal (SAT) on Friday upheld SEBI's finding that Aakruti Nimriti Limited, an unlisted public company, illegally raised Rs. 29.83 crore from 284 persons in 2007 by structuring multiple share offers to avoid public issue norms under Section 67 of the Companies Act, 1956. However, it modified SEBI's refund directions, restricting repayment only to those investors who wish to exit and reducing the interest rate to 6% per annum. A coram of Presiding Officer Justice P.S....