HC directed SEBI, BSE and NSE to compensate Rs. 50 Lakhs for illegal freezing of Demat account

Pradeep Mehta Vs Union of India (Bombay High Court)

Conclusion: The statutory bodies such as BSE / NSE and SEBI had totally acted contrary to norms on illegal freezing of De-mat account of assessee merely for the reason that at one time assessee happened to be one of the promoters of a company as assessee’s role as the promoter had come to an end after the formation of the company and once the company stood incorporated. Therefore, SEBI/BSE/NSE were directed to jointly pay to assessee cost of Rs.50 lakhs within a period of two weeks.

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