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...

SAT Upholds SEBI Finding Of Telegram-Linked Pump-And-Dump In Superior Finlease shares

The Securities Appellate Tribunal (SAT) at Mumbai has upheld SEBI's finding that a “pump and dump” scheme was carried out in the shares of Superior Finlease Limited through Telegram channels in September 2021. While doing so, a coram of Presiding officer P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar confirmed disgorgement of unlawful gains and market debarment against Rajneesh Kumar, a director of the company, and his connected entities. It also upheld monetary...

Minimum Penalty Under SEBI Act Can Be Reduced In Appropriate Cases: SAT Majority

The Securities Appellate Tribunal at Mumbai has, by a 2:1 majority, held that penalties imposed under the SEBI Act can be reduced below the statutory minimum in appropriate cases after considering mitigating factors.Setting out its reasoning upfront, the majority said that the scheme of the Act itself allows such flexibility. “In our considered opinion, the provisions of section 15J come to the rescue in appropriate cases and, in our interpretation, have the power to reduce the penalty below...

SAT Mumbai: Termination of SPA in Financial Notes is 'No Disclosure' Under SEBI Regulations

The Securities Appellate Tribunal (SAT) held that termination of a Share Purchase Agreement, when camouflaged in the notes appended to financial results and not disclosed in the main minutes of the board meeting, amounts to no disclosure at all under the SEBI (LODR) Regulations, 2015.Tanzania Bottling Company (TBC) has successfully challenged SEBI's dismissal of its complaint against Varun Beverages Limited (VBL), alleging that a 'camouflaged' disclosure regarding a terminated deal led to a...