Sebi passes final order on Adventz Finance
Sebi refuses to give any further interim relief to Jai Annanya, which is seeking more time to repay loan worth `40crore to Adventz Finance since both entities are found to be linked
Mumbai: The Securities and Exchange Board of India (Sebi) as per submission before the Securities Appellate Tribunal (SAT) passed a final order on Adventz Finance Ltd on 30 July.
In the order, Sebi declined to provide any further interim relief to Jai Annanya Investments. Jai Annaya was seeking an interim relief to repay loan worth ₹ 40crore to Adventz Finance.
SAT had directed Sebi on 26 July to pass a final order on Adventz Finance within a week (from the date of the order). In the order, SAT had withdrawn the ₹ 1lakh penalty on Sebi, after the market regulatory body filed a review petition on an earlier SAT order dated 16 July.
In that order, the tribunal had questioned Sebi’s conduct and was upset over the delay in passing a final order on the matter. The market regulator rejected the company’s plea and claimed that Jay Annanya and Adventz Finance were unconnected entities.
“The material provided by these entities and data as available on Exchange/ depositories /MCA (Ministry of Corporate Affairs) websites, it is noted that the claim of Adventz that it is unconnected to Jai Annanya is false," said Sebi’s whole-time member Rajeev Kumar Agarwal.
However, Sebi has allowed Jai Annanya to continue its Non-Banking Financial Company (NBFC) business and allowed it to open new account tagged as ‘client margin account’, create pledge on client securities for the purpose of giving them loan, sell clients’ securities from ‘client margin account’ on account of default by the client to pay the margin money.
The matter relates to a Sebi interim order passed on 20 August 2015. The order prohibited 59 entities, including Jai Annanya from securities markets and had also referred the case to the Income Tax Department for further investigations.
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