Midcap case: SAT asks Sebi to pass final order on two entities

The Securities Appellate Tribunal (SAT) today asked Sebi to pass a final order against Gajria Jayna Precision Industries and Passion System Solutions by June, 2014.

The case relates to share price plunge in some mid-cap stocks of Parsvnath, Tulip Telecom, Pipavav Defence and Glodyne Technoserve, in July, last year, at BSE and NSE.

After finding prima facie evidence that Gajria and Passion were involved in the mid-cap crash, Securities and Exchange Board of India (Sebi) in December, 2012 had barred them from accessing the capital markets till further orders.

The entities had thereafter approached the SAT challenging Sebi's rulings.

The market regulator had submitted to SAT that the probe against the entities would be completed by end of February, 2014 and the final order would be passed "as expeditiously as possible" and not later than June 30, 2014.

Counsels for the entities also submitted that they would co-operate in the matter with Sebi.

Accepting the submissions by the parties, SAT said: "It is made clear that no extension of time either to complete investigation or for passing final order would be granted".

Meanwhile in a separate case, SAT has upheld Sebi's order against one Suresh Bharrat in a case related to fraudulent trade practices in the capital markets.

Sebi had found that Bharrat had executed synchronised / matched / reversal trades and indulged in non-genuine transactions through his stock-broker in the capital market, way back in 2007.

In 2009, the regulator had imposed a penalty of Rs 17.50 lakh on Bharrat in view of the violations. Following this, Bharrat had challenged Sebi's order before SAT.

Upholding Sebi's order, SAT today directed Bahrrat to pay to the regulator "penalty amount of Rs 17,50,000 imposed under impugned order by two installments -- Rs 5,00,000 within a period of 10 days from today and balance amount of Rs 12,50,000 on or before March 31, 2014".