SAT directs Sebi to pass orders in Alka Securities case

The Securities Appellate Tribunal today directed Sebi to pass 'appropriate' orders by June 20 in the matter of attachment of bank and demat accounts of Alka Securities and two individuals.
The Securities and Exchange Board of India (Sebi) last month had ordered the freezing of bank and demat accounts of Alka Securities, Brijesh Kothari and Priyanka Kothari to recover penalties that were imposed on them for violating capital market norms.
Besides, Sebi had ordered for attaching the lockers held by these entities. They moved SAT against the Sebi order.
"...Appellants (Alka Securities, Brijesh Kothari and Priyanka Kothari) have made several grievances against the attachment levied...It would be just and proper for the appellants to make representation to Sebi so that appropriate orders are passed thereon," SAT said in its today's order.

The tribunal directed three entities "to make a representation in that behalf before Sebi on or before June 11, 2014 and if any representation is made by the three appellants, Sebi shall consider the same and pass appropriate orders thereon on or before June 20, 2014".
In a separate order, SAT today remanded a matter back to Sebi with respect to violation of takeover norms by Pal & Paul Builders.

The entity was imposed with a penalty of Rs 10 lakh by the market regulator in January for delays in making yearly disclosures to stock exchanges for a period of 14 years (from 1998 till 2011).

In its submissions to SAT, the company said the Delhi Stock Exchange on which its shares were listed has been non- functional since last 13-14 years.
"This material aspect of the matter which goes to the root of the matter has not been considered by the Adjudicating Officer (of Sebi)," SAT note, among others.
"In this view of the matter, by consent the impugned order is set aside and the matter is restored to the file of the Adjudicating Officer to pass fresh order in accordance with law after giving an opportunity of hearing to the appellant," SAT said in the order today.