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....

SAT Reiterates Show Cause Notices Are Not Appealable, Dismisses Brokers' NSE Co-Location Appeals

Reiterating that a show cause notice is not an appealable order, the Securities Appellate Tribunal has held that such notices cannot be construed as “orders” appealable under Section 15T of the SEBI Act. A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar dismissed a batch of appeals filed by multiple stock brokers challenging show cause notices and related communications issued by the Securities and Exchange Board of India in an...

SAT Rejects Avadhut Sathe Academy Plea To Withdraw ₹2.25 Crore Monthly Till SEBI Probe Ends

The Securities Appellate Tribunal (SAT) has recently refused to allow Avadhut Sathe Trading Academy Private Limited, the trading institute run by financial influencer Avadhut Sathe, to withdraw Rs. 2.25 crore monthly for operational expenses. The withdrawal was sought till the conclusion of SEBI's enquiry. The Tribunal said the company's appeal had already been disposed of an refused to grant any relief. A bench of Presiding Officer Justice P.S. Dinesh Kumar and Technical Member Meera...

SAT Upholds SEBI Findings On Manipulation Of Stock Tips Aired Through CNBC Show 'Pandya Ka Funda'

The Securities Appellate Tribunal (SAT) has recently upheld the findings of the Securities and Exchange Board of India in a case involving the alleged manipulation of stock recommendations disseminated through the CNBC television show “Pandya Ka Funda”. The matter was heard by a coram comprising Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar. The appeal arose from a SEBI order passed against Alpesh Vasanji Furiya and his connected...

SAT Upholds SEBI Interim Order Against Avadhut Sathe Academy, Cuts Deposit To ₹100 Crore

The Securities Appellate Tribunal (SAT) at Mumbai on Thursday upheld an ex-parte interim order passed by the Securities and Exchange Board of India against Avadhut Sathe Trading Academy Private Limited. At the same time, it partly modified the direction, requiring the appellants to secure Rs 546.17 crore. The amount was reduced to Rs 100 crore. The appeal was heard by Presiding Officer Justice P.S. Dinesh Kumar and Technical Member Meera Swarup. The tribunal said SEBI had made out a prima...

SAT Refuses Interim Relief To Embassy Developments Against Surveillance Inclusion Despite Insolvency Stay

The Securities Appellate Tribunal (SAT) has recently refused to grant interim relief to Embassy Developments Limited against the inclusion of its scrip under the Additional Surveillance Measures framework by the stock exchanges, holding that a stay of insolvency proceedings does not restore a company to the position it occupied before admission of an insolvency petition.Additional Surveillance Measures are trading safeguards imposed by stock exchanges to protect investors from the volatility of...

SAT Overturns SEBI Orders Against Bombay Dyeing, SCAL In Flat Sale MoU Case In 2–1 Verdict

In a 2–1 split verdict, the Securities Appellate Tribunal in Mumbai has overturned SEBI's orders against Bombay Dyeing and SCAL Services, holding that the regulator failed to establish that the flat sale agreements between the two group companies were sham transactions.The majority ruling was delivered by Technical Members Meera Swarup and Dheeraj Bhatnagar. Presiding Officer Justice P. S. Dinesh Kumar dissented. SEBI's case focused on 11 memoranda of understanding signed between 2012 and 2014...