SAT asks Sebi to pass final order in 3-month in Teakwood case

The Securities Appellate Tribunal (SAT) has directed Sebi to pass a final order within three months in case of Teakwood Management Services, which has been barred from securities market by the market regulator.

Sebi's interim order in August 2009 in the matter of Pyramid Saimira had prohibited Teakwood Management Services (formerly known as Nirman Management) from accessing the securities market till the completion of investigation.

The company approached the Tribunal this month saying the ban against it continued for more than three years and the regulator has not taken any decision to discontinue such "harsh directions" even though investigation in the matter was concluded on July 31, 2010.

In Pyramid Saimira case, the regulator had prohibited 228 persons and entities from trading in the markets including IPO in 2009 for allegedly violating regulations related to fraudulent and unfair trade practices.

Expressing concern over Sebi's approach, SAT in its order dated March 22 directed the regulator "to pass a final order in the matter within a period of three months from the date of receipt of reply to the show cause notice from the appellant (Teakwood Management Services)."

"In case the Board fails to do so, the impugned order passed against the appellant shall automatically stand vacated," it added.

However, Sebi said it has already issued a show cause notice to the company on March 21, 2013 immediately after the company approached the Tribunal for relief.

Also, the regulator said it would pass a final order in the matter within a period of three months from the date of receipt of reply to the show cause notice from the appellant.

Moreover, SAT has rejected the company's plea to permit it to sell the scrips of three firms --Bihar Tubes (now known as APL Apollo Tubes), Sel Manufacturing Company and Usher Agro-- held in its account on the grounds that such prayer was not in the appeal.