SAT asks BSE panel to pass order in Keynote case till May-end

The Securities Appellate Tribunal (SAT) has given more time to the defaulters' committee of the BSE and a clearing corporation to pass fresh order in a case related to Keynote Capital.
The extension was sought by BSE and ICCL (Indian Clearing Corporation Ltd), subsidiary of the BSE on the ground that some of the members of the earlier defaulters committee who had heard the matter had resigned before passing the order.
Besides, they said that the new defaulters committee, which is already constituted, would be able to hear the matter on merits and pass order only after they undergo orientation course.

Pursuant to this, SAT in an order passed today said it found the case "fit and proper to grant extension of time as claimed."
"Accordingly, time to pass fresh order by the defaulters committee is extended till May 31, 2015."
Early last year, SAT had asked defaulters' committee of the BSE and its clearning corporation to pass fresh order in the case.

The case relates to Keynote Capital raising about Rs 89 lakh after selling ABG Shipyard shares that were registered in the name of Prime Securities. These scrips were sold since Prime Securities had outstanding dues payable to Keynote Capital.

Keynote Capital later deposited the amount with the BSE as the latter said Prime Securities was found to be a defaulter to it as well as to ICCL.
As the exchange did not return the money, Keynote Capital had appealed to SAT.