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30 June 2017
 |
| SEBI (The Total Investment & Insurance Solutions) |
The
Securities Appellate Tribunal on 28 June 2017 passed a judgment rapping
Securities and Exchange Board of India (SEBI) in two cases and imposing a
Rs10,000 fine.
In
one case, the appellants were Vilas Valunji, Partha Debnath and Janardhan
Shriniwas Purandare. In another case, VA Norhi was the appellant.
SEBI
was seeking an extension to comply with a SAT order of 5 September 2014. As per
the order, SEBI had to issue a show-cause notice to the appellants and pass a
fresh order, preferably within a period of four months from 5 September 2014.
In spite of the specific direction, SEBI failed to comply. SEBI filed several
affidavits explaining the circumstances in which the SAT order had not been
implemented. The Total Investment & Insurance
Solutions
SAT
said in its 28th June order that it was unimpressed by SEBI’s explanations. “In
spite of the specific direction contained in the order of this Tribunal dated 5
September, 2014 SEBI has failed and neglected to comply with the said
directions. Although SEBI has filed several affidavits explaining the
circumstances in which the order of this Tribunal had remained to be
implemented we are not at all impressed by those explanations. In our opinion,
there is gross negligence on part of various officials of SEBI including the
concerned Whole Time Member (WTM) of SEBI. Although, no case is made out for
grant of extension, for the negligence of SEBI, a person who has allegedly
violated SEBI Act and the regulations made there under cannot go unpunished.”
SEBI was directed to pay a fine of Rs10,000 to the Advocate for the appellant
VA Nohri, within a period of two weeks from 28th June 2017.
The
order also directed SEBI to issue show cause notices to the appellants within
two weeks from the day of the order. The appellants in the respective appeals
were told to file a reply within four weeks of receiving the show-cause notice.
Further, SAT ordered SEBI to complete the adjudication proceedings in
accordance with law and pass an appropriate order within four weeks of
receiving the reply from the appellants. If the reply is not received within
the stipulated time, SEBI is at liberty to pass ex-parte order. The Total Investment & Insurance Solutions
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