SAT judgments

Securities Appellate Tribunal (SAT) – An Overview

SEBI - Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and to dispose appeals against orders passed by the Securities and Exchange board of India or by an adjudicating officer under the Act....

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Satyam founder B Ramalinga Raju gets 6-month sentence in SFIO case

SEBI - A local court from Hyderabad on 08.12.2014 convicted Satyam founder B Ramalinga Raju, accused of one of the most sensational corporate frauds  in the country, and other accused in connection with complaints filed by Serious Fraud Investigation Office (SFIO)....

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SAT Quashes SEBI’s penalty of Rs. 20 lakhs on DHFL

Dewan Housing Finance Corporation Ltd. Vs SEBI (Securities Appellate Tribunal) - Dewan Housing Finance Corporation Ltd. Vs SEBI (Securities Appellate Tribunal) 1. The present appeal has been filed questioning the legality and validity of the order dated 29th May, 2020 passed by the Adjudicating Officer under section 15-1 of the Securities and Exchange Board of India Act, 1992 (h...

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Seize ₹ 3.83 Cr from Dynamatic CEO in Insider Trading case: SEBI

Dr. Udayant Malhoutra Vs SEBI (SAT Mumbai) - Dr. Udayant Malhoutra Vs SEBI (Securities Appellate Tribunal, Mumbai) 1. The present appeal has been filed against an ex-parte order dated June 15, 2020 passed by the Whole Time Member (‘WTM’ for short) of Securities and Exchange Board of India (‘SEBI’ for short) directing th...

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SAT reduces fine for unintentional failure to include Audit Report in XBRL

SPL Industries Ltd. Vs BSE Limited (SAT Mumbai) - SPL Industries Ltd. Vs BSE Limited (SAT Mumbai) Unintentional Failure on part of the Company to include the Audit Report in the Financial Results in XBRL uploaded on BSE website, for which BSE imposed fine of Rs. 5,54,600. However SAT reduced the penalty to Rs. 2,50,000 on the grounds that there was...

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Companies should disclose material events promptly & ensure that they are available in public domain: SAT

M/s New Delhi Television Limited Vs SEBI (SAT Mumbai) - M/s New Delhi Television Limited Vs SEBI (SAT Mumbai) SAT upheld the order of SEBI penalising the Company and its Directors for non- disclosure of tax demand on the grounds that any information which have effect on the operations of the Company is price sensitive and must be disclosed immediately to...

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Mere upload of order on SEBI website not amounts to service of order: SAT

Dr. Prannoy Roy & Ors. Vs SEBI (SAT, Mumbai) - Dr. Prannoy Roy & Ors. Vs SEBI (SAT) it is essential for SEBI to supply a copy of the impugned order to the aggrieved party, namely, the appellants. An adjudication proceeding had been initiated by SEBI by issuance of the show cause notice. The appellants thus have the first right to be supplied...

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Govt. revises retirement age for Presiding officers of SAT

Notification No. S.O. 1702(E) - (29/05/2017) - No person is qualified to be appointed as the Presiding Officer- (a) of the Securities Appellate Tribunal established under the Securities Exchange Board of India Act, 1992 (15 of 1992), unless he is, or has been, a judge of Supreme Court or Chief Justice of High Court or a Judge of High Court for a...

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Recent Posts in "SAT judgments"

SAT Quashes SEBI’s penalty of Rs. 20 lakhs on DHFL

Dewan Housing Finance Corporation Ltd. Vs SEBI (Securities Appellate Tribunal)

Dewan Housing Finance Corporation Ltd. Vs SEBI (Securities Appellate Tribunal) 1. The present appeal has been filed questioning the legality and validity of the order dated 29th May, 2020 passed by the Adjudicating Officer under section 15-1 of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’...

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Seize ₹ 3.83 Cr from Dynamatic CEO in Insider Trading case: SEBI

Dr. Udayant Malhoutra Vs SEBI (SAT Mumbai)

Dr. Udayant Malhoutra Vs SEBI (Securities Appellate Tribunal, Mumbai) 1. The present appeal has been filed against an ex-parte order dated June 15, 2020 passed by the Whole Time Member (‘WTM’ for short) of Securities and Exchange Board of India (‘SEBI’ for short) directing the appellant to deposit a sum of Rs. 2,66...

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SAT reduces fine for unintentional failure to include Audit Report in XBRL

SPL Industries Ltd. Vs BSE Limited (SAT Mumbai)

SPL Industries Ltd. Vs BSE Limited (SAT Mumbai) Unintentional Failure on part of the Company to include the Audit Report in the Financial Results in XBRL uploaded on BSE website, for which BSE imposed fine of Rs. 5,54,600. However SAT reduced the penalty to Rs. 2,50,000 on the grounds that there was no deliberate intention […]...

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Companies should disclose material events promptly & ensure that they are available in public domain: SAT

M/s New Delhi Television Limited Vs SEBI (SAT Mumbai)

M/s New Delhi Television Limited Vs SEBI (SAT Mumbai) SAT upheld the order of SEBI penalising the Company and its Directors for non- disclosure of tax demand on the grounds that any information which have effect on the operations of the Company is price sensitive and must be disclosed immediately to the Stock exchange. However, […]...

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Mere upload of order on SEBI website not amounts to service of order: SAT

Dr. Prannoy Roy & Ors. Vs SEBI (SAT, Mumbai)

Dr. Prannoy Roy & Ors. Vs SEBI (SAT) it is essential for SEBI to supply a copy of the impugned order to the aggrieved party, namely, the appellants. An adjudication proceeding had been initiated by SEBI by issuance of the show cause notice. The appellants thus have the first right to be supplied a copy […]...

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Govt. revises retirement age for Presiding officers of SAT

Notification No. S.O. 1702(E) (29/05/2017)

No person is qualified to be appointed as the Presiding Officer- (a) of the Securities Appellate Tribunal established under the Securities Exchange Board of India Act, 1992 (15 of 1992), unless he is, or has been, a judge of Supreme Court or Chief Justice of High Court or a Judge of High Court for at least seven years;...

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Securities Appellate Tribunal (SAT) – An Overview

Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and to dispose appeals against orders passed by the Securities and Exchange board of India or by an adjudicating officer under the Act....

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Posted Under: SEBI |

Unpublished Price Sensitive Information- SAT fixes commencement period

Mrs. Chandra Mukherji and Shelter Infra Projects Pvt. Ltd. Vs SEBI (SAT)

SAT determined and confirmed period from which Unpublished Price Sensitive Information shall be deemed to have come into force...

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Satyam founder B Ramalinga Raju gets 6-month sentence in SFIO case

A local court from Hyderabad on 08.12.2014 convicted Satyam founder B Ramalinga Raju, accused of one of the most sensational corporate frauds  in the country, and other accused in connection with complaints filed by Serious Fraud Investigation Office (SFIO)....

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Posted Under: SEBI |

Impose penalty for each offence independently for delay or default in making disclosures- SAT

Splash Media & Infra Ltd. Vs Securities and Exchange Board of India (SEBI Mumbai)

Since failure to make disclosure under each regulation constitutes independent offence attracting independent penalty, in the facts of present case, where there are multiple offences it would be just and proper to impose penalty for each offence independently depending upon the delay or default in making disclosures which are mandatory....

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Posted Under: SEBI |

Those who are aggrieved by NSE decision can file an appeal not the one who benefited -SAT

Victor Fernandes Vs National Stock Exchange of India Ltd. (Security Appelate Tribunal, Mumbai)

The case of the appellants is that they are aggrieved by the decision of NSE to grant listing and trading approval to the equity shares issued by respondent no. 4 under the rights issue. Surprisingly, the appellants have not made any prayer for setting aside or cancellation of the permission granted by NSE for listing of the said rights i...

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SAT – After justification of alleged manipulative transactions subsequent accusation of misuse of account by broker cannot absolve appellant from penalty

Sandeep Jain Vs Securities and Exchange Board of India (Securities Appelate Tribunal Mumbai)

We agree with learned counsel for the respondent Board that the alibi, that appellant does not understand English is not acceptable as he has given all his information in the KYC form in English and has also signed the said application form in English. His reply dated January 27, 2009 to the show cause notice is also in English where he h...

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Penalty for violation of takeover code to be imposed on each violator separately

R. Shankar Vs Securities & Exchange Board of India (Securities Appelate Tribunam Mumbai)

The allotment of shares on preferential basis to the appellants before us is not in dispute. The allotment of preferential shares was made to the connected parties as concluded by the adjudicating officer in the impugned order. The interconnection between them has also been clearly brought out by the adjudicating officer in the impugned o...

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Whether trader indulging in front running can be held guilty of violating regulations 3 and 4 of FUTP regulations?

Sujit Karkera Vs Adjudicating Officer, Securities and Exchange Board of India (Securities Appellate Tribunal, Mumbai)

Transactions impugned in the order of the adjudicating officer took place in the ordinary course of business through the stock exchange mechanism and there was no connivance with CGMMPL and there was no knowledge about the counter party and time of execution. According to him, the transactions were at the market rate and they were not dic...

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One cannot buy and sell shares from himself

Anita Dalal Vs Securities and Exchange Board of India (Securities Appellate Tribunal, Mumbai)

The appellant has been found guilty of self trade as well. Self trades admittedly are illegal. This Tribunal has held in several cases that self trades call for punitive action since they are illegal in nature. ...

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Penalty imposed by SEBI without providing statutory opportunities to appellant is breach of principles of natural justice

Dushyant N. Dalal Vs Securities and Exchange Board of India (Securities Appellate Tribunal Mumbai)

Since every case is to be judged in the facts and circumstances of that case, one cannot hold the view that denial of inspection sought for by the appellant can be brushed aside on the ground of lack of prejudice or conclusion based on facts already considered in other orders relating to the appellants issued by the whole time member. ...

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Posted Under: SEBI |

Whole Time Director not supposed to be ignorant of irregularities in financials

N. Narayanan Vs Adjudicating Officer, Securities and Exchange Board of India (Securites Appelate Tribunal Mumbai)

On a consideration of the facts on record, it has to be concluded that the appellants have not acted in compliance with the statutory requirements of the director of a company. The director of a company is expected to exercise due care and diligence in the approval of documents brought on the table during Board meetings....

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Posted Under: SEBI | ,

Written authorisation necessary to allow a third person to trade on behalf of client of broker

India Infoline Securities Ltd. Vs Securities and Exchange Board of India (Securities Appelate Tribunals Mumbai)

The broker client agreement has got a statutory force since it is meant for observing the rules, bye-laws, regulations and circulars issued by the Exchange. In respect of instructions issued by an authorised representative specific reference is made to the letter authorising the said representatives. ...

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Posted Under: SEBI |

SAT held Ranbaxy Director Guilty of insider trading

Mr. V.K. Kaul Vs Adjudicating Officer (Securities Appelate Tribunals Mumbai)

It is highly improbable to believe the statement of Mrs. Bala Kaul that she bought shares of the target company because of its intrinsic value and strong fundamentals. If that was so, it is not clear, what made her sell these shares on April 10, 2008, when Solrex was still in the process of investing more money into the scrip of the targe...

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Posted Under: SEBI |

Non-compete fees to form part of price offered to public shareholders if payment to promoters not justified

IP holding Asia Singapore Pte. Ltd. Vs Securities & Exchange Board of India (Securities Appelate Tribunal Mumbai)

It was argued by the appellants that the covenants in the non-compete agreement provide for both non-compete obligations as well as an obligation to maintain confidentiality. According to them, it is necessary and advisable to do so as a non-compete obligation without a corresponding obligation to maintain confidentiality, would render an...

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Posted Under: SEBI |

Unless proved Share Broker cannot be held Guilty of Circular Trading

Networth Stock Broking Ltd. Vs Securities and Exchange Board of India (Securities Appelate Tribunal Mumbai)

It has been specifically pleaded by the appellant that during the investigation period, i.e. in the year 2002, there was no software available for carrying out long or real time surveillance and it was not possible to carry out surveillance of thousands of transactions of all clients on a daily basis. It has also been pleaded by the appel...

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Posted Under: SEBI |

Adroit Financial Services (P.) Ltd. v. Securities and Exchange Board of India (SAT)

Adroit Financial Services (P.) Ltd. Vs Securities and Exchange Board of India (Securities Appellant Tribunal Mumbai)

The first allegation relates to transfer of funds in the bank account of the appellant. It is alleged that the appellant has transferred funds from its bank account earmarked in clients trading transactions to the bank account earmarked for its own business operations. In other words, there was no proper segregation of the funds relating ...

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Posted Under: SEBI |

Every information required to be disclosed is to stock exchange is not necessarily a ‘price sensitive information’

Anil Harish Vs Securities and Exchange Board of India (Securities Appallete Tribunal Mumbai)

When a company having contracts worth Rs.1000 crores pending with it for execution bags a few new projects through the tendering process such information need not necessarily be price sensitive. ...

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Posted Under: SEBI |

FUTP- Regulation 3(b) does not import any concept of fraud at all

Pyramid Saimira Theatre Ltd. Vs SEBI

Any act, omission or concealment to be a fraud within the meaning of the Regulations need not be committed in a deceitful manner; intention to deceive is not an essential requirement of the definition of fraud as given in the Regulations; even making a false statement without believing it to be true is by itself an act of fraud....

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Posted Under: SEBI |

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