SAT asks Sebi to speed up Factorial Master Fund investigation

Sets two month deadline for its completion

The Securities Appellate Tribunal has set asked the stock market regulator to complete its investigation into alleged insider trading involving Factorial Master Fund within two months.

"SEBI shall complete the investigation within a period of two months from today. If on completion of such investigation SEBI deems it fit to proceed further in the matter, then SEBI shall issue show cause notice and pass appropriate order thereon after giving an opportunity of hearing to the appellant, within a period of one month from the date of issuing show cause notice," it said.

The tribunal hears appeals against decisions of the Securities and Exchange Board of India. The regulator had barred the fund from accessing the capital market on allegations of insider trading. The fund is said to have acted on the basis of advance information about an offer for sale by L&T Finance Holding Limited to make a profit of around Rs.20 crore.

It added in its Friday order that an earlier order restricting access to the market will stand void if the regulator is unable to complete its procedure within the said period.

"In that event the impugned confirmatory order dated October 16, 2014 continuing the restraint order passed under the exparte ad-interim order dated June 05, 2014 shall come to an end and the appellant would be entitled to access the Indian Securities Market," it said.