Case Law Details
Pooja Vinay Jain Vs SEBI (Securities Appellate Tribunal)
The issue under consideration is whether the delay in launching the proceedings by SEBI can be sustain in law?
The SEBI had investigated in the trading of the scrip of Mindvision Capital Ltd. The appellant i.e. Pooja Jain was involved in fraudulent trading in shares of Mindvision Capital. She has bought 30000 shares of MCL in off-market transaction from one of the connected entity and sold the same by using the platform of the market to other entities.
The appellant state that there was an inordinate delay in initiating the proceedings and, therefore, on this sole ground she is entitled for exoneration.
Securities Appellate Tribunal states that there are judgments which hold that when the period of limitation is not prescribed, such power must be exercised within a reasonable time. What would be reasonable time, would depend upon the facts and circumstances of the case, nature of the default/statute, prejudice caused, whether the third-party rights had been created etc. In the present case, large numbers of entities and transactions were analyzed by SEBI which took some time is considered as justified reason of delay and therefore, the proceedings cannot be quashed simply on the ground of delay in launching the same.
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