SAT
SAT Sets Aside ₹26 Crore SEBI Penalty Against Coffee Day, Directs Fresh Probe Into ₹3,535 Crore Diversion
The Securities Appellate Tribunal (SAT), by a 2:1 majority, has set aside SEBI orders imposing penalties totalling ₹26 crore on Coffee Day Enterprises Limited (CDEL) and directed a fresh investigation into the transfer of ₹3,535 crore from seven of its subsidiaries to Mysore Amalgamated Coffee Estates Limited (MACEL), an entity linked to the company's promoters.The three-member bench comprised Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj...
SAT Imposes ₹1 Lakh Costs On MCX For Unsustainable ₹1.49 Crore Penalty Against Ventura Securities
The Securities Appellate Tribunal has directed the Multi Commodity Exchange of India Limited (MCX) to pay ₹1 lakh in costs to Ventura Securities Limited after setting aside a ₹1.49 crore penalty imposed on the company for an alleged violation of client level open position limits.A coram of Presiding Officer Justice P.S. Dinesh Kumar, Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar also directed MCX to forthwith refund or reverse ₹1.76 crore, including the penalty and applicable Goods...
SAT Reserves Order On Jane Street's Plea Over SEBI's Non-Disclosure Of Relevant Documents
The Securities Appellate Tribunal on Wednesday reserved its judgment in the appeals filed by the Jane Street Group entities challenging SEBI's interim order alleging manipulation of the BANKNIFTY and NIFTY indices.A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar heard arguments on whether SEBI had provided the entities with all relevant documents and material necessary to defend themselves against the allegations.Jane Street...
SAT Sets Aside Order Allowing Chanda Kochhar Access To ICICI Bank's Internal Portal In Videocon Case
The Securities Appellate Tribunal has set aside its earlier direction permitting former ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar to inspect the Bank's Secretarial Portal and access electronic data stored on its servers and devices in connection with the ICICI Bank-Videocon Group matter.A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar held that the data was neither in the possession of the Securities...
SAT Sets Aside ₹35,400 BSE Fine On Calcom Vision Over Missing Audit Report Pages
The Securities Appellate Tribunal has set aside a ₹35,400 fine imposed by the Bombay Stock Exchange (BSE) on Calcom Vision Limited after two pages of its limited review reports were inadvertently omitted during scanning, accepting the company's explanation that the mistake was unintentional."The facts recorded herein persuade us to accept appellant Company's explanation that the non-filing two pages containing CA's signature and UDIN was due to bona fide inadvertence. In a case of this nature,...
SAT Disposes Of Appeals By Hindenburg-Named Mauritius Funds After SEBI Agrees To Share Opinion
The Securities Appellate Tribunal at Mumbai has recently disposed of five appeals filed by Mauritius-based investment funds after the Securities and Exchange Board of India (SEBI) agreed to furnish them with a complete copy of the opinion/ file noting prepared by its Adjudicating Officer. A coram of Presiding Officer Justice P. S Dinesh Kumar, Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar passed the order. The appeals were filed by LTS Investment Fund Limited, Asia Investment...
SAT Mumbai Refuses To Condon Karvy's 688-Day Delay Against SEBI Order, Finds Reasons Not Genuine
On Wednesday, 9 September, the Securities Appellate Tribunal (SAT) at Mumbai dismissed an appeal filed by Karvy Stock Broking Limited after refusing to condone a 688-day delay in challenging an order passed by a SEBI Whole Time Member. A Bench comprising Presiding Officer Justice P.S. Dinesh Kumar with Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar observed that the reasons cited by Karvy for the delay were not based on genuine facts and that its application lacked bona fides. The...
SAT Upholds SEBI Action Against Omaxe Limited Over ₹647 Crore Round-Tripping, Calls Transactions Sham
The Securities Appellate Tribunal has recently upheld SEBI's findings against Omaxe Limited, a listed real estate company, and its senior officials over financial misstatements and circular movement of funds.Observing that the transactions were “not genuine”, the tribunal held that they were designed to “dress up the financial results”. It found that the arrangement created a false impression that the company had strong financials.It found that the transactions were not genuine. The tribunal...
Common Personnel Conditions Under Credit Rating Agency Rules Apply To Promoter's Borrowers, Subsidiaries: SAT
The Securities Appellate Tribunal has recently clarified that the conditions relating to common Chairmen, directors, and employees between a credit rating agency and an entity being rated also apply to borrowers and subsidiaries of the agency's promoter, and not only to its associates.The conditions appear in Regulation 27(1) of the SEBI (Credit Rating Agencies) Regulations, 1999. The tribunal found that there was “ambiguity and lack of clarity” over whether they applied to borrowers and...
SAT Mumbai Dismisses Appeal Against SEBI Refusal To Relax Competing Offer Timeline
The Mumbai Securities Appellate Tribunal (SAT) on 19 August ruled that a competing acquirer must make a public announcement within 15 working days of the Detailed Public Statement issued by the first acquirer, and cannot seek relaxation of the timeline at a later stage. A Bench comprising Presiding Officer Justice P.S. Dinesh Kumar with Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar dismissed businessman Digvijay Laxhamsinh Gaekwad's appeal against the Securities and Exchange Board of...
SAT Partly Lifts SEBI Market Ban On ZEEL, Punit Goenka To Allow Fundraise From Promoter Group Entity
The Securities Appellate Tribunal (SAT) has partly relaxed the market-access restrictions imposed on Zee Entertainment Enterprises Limited (ZEEL) and its former MD Punit Goenka by SEBI. It has allowed them to complete a preferential issue of fully convertible warrants to a promoter group entity.The permission is subject to ZEEL and Goenka depositing their respective penalties of ₹30 lakh and ₹58 lakh within one week. The Tribunal has also extended by one week the deadline for completing the...
SEBI Settlement Does Not Bar Stock Exchange From Imposing Separate Fine For Same Violation: SAT
The Securities Appellate Tribunal (SAT) at Mumbai has recently reiterated that a listed company's settlement with the Securities and Exchange Board of India (SEBI) does not prevent a stock exchange from imposing a separate fine for the same violation.A bench of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar made the observation while dismissing Hindustan Foods Limited's appeal against a ₹52.21 lakh fine imposed by BSE Limited for...