SAT Overturns SEBI Orders Against Bombay Dyeing, SCAL In Flat Sale MoU Case In 2–1 Verdict

In a 2–1 split verdict, the Securities Appellate Tribunal in Mumbai has overturned SEBI's orders against Bombay Dyeing and SCAL Services, holding that the regulator failed to establish that the flat sale agreements between the two group companies were sham transactions.The majority ruling was delivered by Technical Members Meera Swarup and Dheeraj Bhatnagar. Presiding Officer Justice P. S. Dinesh Kumar dissented. SEBI's case focused on 11 memoranda of understanding signed between 2012 and 2014...

SAT Upholds SEBI Finding Of Telegram-Linked Pump-And-Dump In Superior Finlease shares

The Securities Appellate Tribunal (SAT) at Mumbai has upheld SEBI's finding that a “pump and dump” scheme was carried out in the shares of Superior Finlease Limited through Telegram channels in September 2021. While doing so, a coram of Presiding officer P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar confirmed disgorgement of unlawful gains and market debarment against Rajneesh Kumar, a director of the company, and his connected entities. It also upheld monetary...

Minimum Penalty Under SEBI Act Can Be Reduced In Appropriate Cases: SAT Majority

The Securities Appellate Tribunal at Mumbai has, by a 2:1 majority, held that penalties imposed under the SEBI Act can be reduced below the statutory minimum in appropriate cases after considering mitigating factors.Setting out its reasoning upfront, the majority said that the scheme of the Act itself allows such flexibility. “In our considered opinion, the provisions of section 15J come to the rescue in appropriate cases and, in our interpretation, have the power to reduce the penalty below...

SAT Mumbai: Termination of SPA in Financial Notes is 'No Disclosure' Under SEBI Regulations

The Securities Appellate Tribunal (SAT) held that termination of a Share Purchase Agreement, when camouflaged in the notes appended to financial results and not disclosed in the main minutes of the board meeting, amounts to no disclosure at all under the SEBI (LODR) Regulations, 2015.Tanzania Bottling Company (TBC) has successfully challenged SEBI's dismissal of its complaint against Varun Beverages Limited (VBL), alleging that a 'camouflaged' disclosure regarding a terminated deal led to a...