The Supreme Court has issued a notice to Indiabulls Securities after SEBI challenged a Securities Appellate Tribunal order setting aside the penalty imposed against the firm by the market regulator for alleged manipulative and fraudulent practices in the F&O segment.
Issuing the notice to the Indiabulls on the plea by market regulator, a three-judge bench headed by Chief Justice S H Kapadia asked the brokerage firm to file its reply.
Market regulator Securities and Exchange Board of India had on February 25, 2009, imposed a fine of Rs 15 lakh on Indiabulls Securities after finding that the firm indulged in manipulative and fraudulent practices in the Futures and Options (F&O) during January-March 2007.
Indiabulls Securities, however, had challenged SEBI’s order before appellate tribunal SAT, which on October 26, 2010, had set aside SEBI’s order after observing there was no fraudulent practice.
