Sebi moves SC in KNA Securities penalty case

Market regulator the Securities and Exchange Board of India (Sebi) today moved the Supreme Court against the Securities Appellate Tribunal (SAT), which reduced the fine imposed on a trading firm KNA Securities for not paying the registration fee.

A 3-member bench, headed by Chief Justice SH Kapadia, issued notice to KNA Securities owned by KN Amerchand who was allegedly associated with Harshad Mehta in the securities scam. He was discharged in 2009 by the special court.

On January 10, the Sebi suspended the registration of KNA for failing to clear registration fee dues of 15 years.

It had asked the firm to pay Rs 17.72 lakh as fees and Rs 24.17 lakh as interest on dues.

KNA moved SAT and said that Amerchand was made a party by the special court, hearing the case of the securities scam in 2001, and his name was struck off only in 2009. Hence, during the period of 2001 to 2009, it did not trade.

SAT said the case needed to be sympathetically considered and reduced the interest claimed by Sebi to 20%, prompting Sebi to move the apex court.