Case Law Details
SecureKloud Technologies Limited Vs Securities and Exchange Board of India (SAT Mumbai)
The Securities Appellate Tribunal (SAT) in Mumbai recently reduced the penalty imposed on SecureKloud Technologies Limited for violations of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations. The penalty was reduced from Rs 25 lakhs to Rs 10 lakhs.
Background: The Adjudicating Officer (AO) of the Securities and Exchange Board of India (SEBI) had initially imposed penalties under Section 23E of the Securities Contracts Regulation Act, 1956 (SCRA) and Section 15HB of the SEBI Act, 1992. These penalties were for violations like improper approval of related-party transactions, compromised independence of Independent Directors, and failure to disclose a forensic audit.
Key Observations
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