BackSebi apologizes, SAT withdraws Rs1 lakh penalty
SAT considers affidavits filed by Sebi to be an unconditional apology
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Mumbai: If it is rare for the Securities and Exchange Board of India (Sebi) to find itself at the receiving end of a Securities Appellate Tribunal (SAT) order, it is even rarer for the market regulator to tender an unconditional apology.
The SAT on Tuesday reversed an earlier ruling imposing a ₹ 1 lakh penalty on Sebi for delay in passing a final order after the latter apologised.
“Applicant Sebi has filed an affidavit of the chief general manager (Sebi) and an affidavit of the whole-time member of Sebi, wherein an unconditional apology is tendered," read the SAT order.
In an order on 16 July, SAT had imposed a cost of ₹ 1 lakh on Sebi for delay in passing a final order in an issue concerning Adventz Finance Pvt. Ltd. SAT had also directed that a different whole-time member take over the adjudication proceedings. The tribunal had held that Sebi was in violation of an earlier SAT directive that it pass a final order by 24 June.
Then, SAT had directed that a copy of the order be forwarded to the finance ministry and Sebi chairman U.K. Sinha. Following the SAT order, Sebi filed a review petition before the tribunal.
While recalling the costs imposed on Sebi, SAT considered the affidavits filed by Sebi to be an unconditional apology.
“In view of the assurance given to the effect that appropriate orders would be passed in accordance with law, we modify our order dated July 15, 2016 and permit the WTM (whole-time member) of Sebi who had heard the appellant on June 21, 2016 to pass an appropriate order in accordance with law within one week from today after giving an opportunity of hearing to the appellant," the SAT order added.
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