Case Law Details
Balram Garg Vs Securities And Exchange Board of India (Supreme Court of India)
Facts- P. Chand Jeweller Pvt. Ltd. was incorporated on April 13, 2005 under the Companies Act, 1956 as a Private Limited Company. However, pursuant to a resolution passed by the shareholders on July 5, 2011, the company was converted into a Public Limited Company, following which the name of the company was changed to “PC Jeweller Ltd.” and a fresh certificate of incorporation was issued.
The genesis of the present dispute is rooted in the action of Respondent/SEBI against the appellants vide an impounding order dated 17.12.2019 and a showcause notice dated 24.04.2020.
Being aggrieved by the SAT order. The appellant has preferred the present appeal. The main contention of the respondent is that, firstly, there existed a close relationship between the appellants herein; and secondly, that based on the circumstantial evidence (trading pattern and timing of trading), it could be reasonably concluded that the appellants in C.A. No.7590 of 2021 were “insiders” in terms of Regulation 2(1)(g)(ii) of the PIT Regulations.
Conclusion-
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