SAT asks Sebi to pass order in Baba Bhootnath case in 5 mths

The Securities Appellate Tribunal has asked Sebi to pass adjudication order in the case related to Baba Bhootnath Trade & Commerce within five months, as has been assured by the market regulator.

The matter is related to alleged fraudulent trading by the company in the initial public offer of Taksheel Solutions.

Based on its preliminary probe, the Securities and Exchange Board of India (Sebi) had barred Baba Bhootnath Trade & Commerce from dealing in the securities market on December 28, 2011. The order was confirmed by the market regulator on May 11, 2012.

In March this year, the entity had filed an appeal with the Tribunal against Sebi's order.

In its submission to the Tribunal, Sebi has stated that probe into the matter has been completed and a show cause notice dated March 14, 2013 has been issued to Baba Bhootnath, and that the entity has already filed its reply on the same.

Further, the regulator said that the adjudication proceedings in the case would be completed within a period of five months, provided that Baba Bhootnath Trade & Commerce cooperated in the matter.

"It is made clear that if adjudication order is not passed within a period of five months from today, restraint orders dated December 28, 2011 and May 11, 2012 shall stand automatically vacated," the Tribunal said in an order issued yesterday.