The Securities Appellate Tribunal
(SAT) on Friday rejected beleaguered businessman Vijay Mallya's appeal against Securities and Exchange Board of India's (Sebi) order that had barred him from holding any board position in a listed company.
The tribunal also upheld the regulator's order of barring him and six others from the securities market for alleged violation of listing norms and diversion of funds.
The appellate tribunal has dismissed all appeals against the Sebi
order saying that considering the gravity of the matter, the market regulator was justified in invoking its extraordinary power of passing an ex-parte order.
"In view of the above facts and circumstances and analysis of law and with above observations we are inclined to dismiss the appeal with a direction to the appellant to appear before Sebi, in person or through a legally authorised representative, and make his submissions within 21 days," SAT
said in the order.
On Mallya's plea on board position, SAT
said, "We find that this prayer of the appellant should be considered by the Sebi
as per law, if so advised, and in case Sebi
finds merit in the submission of the appellant it would be free to grant partial relief, SAT
said in the order."
The market regulator had passed its order based on a prima facie view and that instead of rushing to appeal; Mallya should have defended himself before the market regulator by availing of the opportunity granted to him, said SAT.
The tribunal also dismissed the appeal of four other former United Spirits (USL) officials who were also barred from accessing capital markets
and holding key managerial positions.
Six other officers of USL were also barred from the capital markets
via the interim order by the markets
regulator on January 25, in the matter of USL, had filed a separate appeal.