SAT gives Sebi 'last chance' to pass order in a case

The Securities Appellate Tribunal (SAT) has directed Sebi to pass an order by July 31 in a matter related to alleged fraudulent activities while cautioning that failure to take a decision could attract perjury action against the concerned officer of the regulator.
"... As a last chance we direct Sebi to pass appropriate order on or before July 31, 2014 subject to payment of cost of Rs 10,000 to be paid by Sebi to the respondents herein within a period of 2 weeks from today," SAT said in the order.
"We make it clear that if Sebi fails to pass appropriate order by July 31, 2014, we will have option but to consider the application of the respondents herein seeking perjury action against officer of Sebi on its own merits," it added.

The case relates to alleged misleading and fraudulent advertisement in various news papers by directors and promoters of Vital Communication.
Consequently, Sebi had restrained Vital Communication's promoters and directors from accessing the capital markets for violations of the regulator's norms.
Following an appeal by the directors/promoters, the tribunal had in August 2008 set aside the prohibitory orders passed by Sebi and remanded the case back to the regulator for fresh proceedings.

The tribunal on April 30, 2013, and then again on December 6 in same year asked Sebi to pass orders in the case.
In its latest order dated June 13, SAT noted that Sebi had fixed personal hearing on June 20 and has further submitted that appropriate order would be passed thereafter within the time stipulated by the tribunal.

"In spite of three orders passed by this tribunal since 2008, Sebi has failed to pass appropriate order on the complaints filed by investors of Vital Communication," the order said.
"Six years from 2008 to 2014 is a fairly long period and failure on part of Sebi to pass appropriate order in these six years in spite of solemn assurances given by counsel for Sebi from time to time clearly shows callous attitude on part of Sebi in complying with the orders of this tribunal," it noted.
In a separate order, SAT upheld Sebi's orders against Mafatlal Finance Company's two promoters in a case related to non-compliance with the disclosure norms.

The market regulator had imposed a fine of Rs 10 lakh each on promoters -- Mafatlal Industries and Ensen Holdings (now known as PIL Chemicals) for failing to make requisite disclosures on various occasions between 1998-2008.
In the order dated June 13, SAT said that the penalty imposed is less than Rs 1 lakh per day as against the penalty of Rs 1 crore imposable for each of the years in question.
"...We see not merit in these appeals and accordingly both these appeals are hereby dismissed with no order as to costs," SAT said.