SAT upholds Sebi move on DPs

 NSDL had filed an appeal against a Sebi circular dated 9 November,  2005 asking depositories and DPs not to charge any transaction fees from investors while shifting securities.  Sebi contended that the transaction charges were discouraging investors to shift accounts even though they may be dissatisfied with the DP's service.  "It is desirable that investors are freed of this cost," Sebi had said in the circular, which came into effect from 28 January this year.

The verdict in favour of Sebi is amongst a string of victories the regulator has been receiving from the courts in the last few weeks.  Recently, SAT had upheld Sebi's decision to ban Jermyn Capital LLC,  a registerred foreign institutional investor (FII), from dealing in the Indian securities market for its links with banned trader Ketan Parekh.

In another instance, the Gujarat High Court had  dismissed petitions filed by some investors and stock brokers against the Sebi order banning them from the securities market for their role in the initial public offering (IPO) scam.