SAT sets aside Sebi order against entities in Parichay Investments matter

The Securities Appellate Tribunal (SAT) has set aside market regulator Sebi's order that imposed Rs 2.45 crore fine on 18 entities for being involved in manipulative trade in shares of Parichay Investments.

Besides, the tribunal has given liberty to Sebi to issue a fresh show cause notice if it so desires. Such show cause notice should be issued within six weeks.

The order comes following appeals by entities saying that the matter required reconsideration and prayed that the impugned order may be set aside and liberty given to the regulator to issue a fresh show cause notice.

Moreover, Sebi's counsel did not have any objection to the same.

Accordingly, in an order passed on November 7, the tribunal said,"we quash the impugned order dated November 16, 2018 passed by the adjudicating officer of Sebi and give liberty to Sebi to issue a fresh show cause notice if they so desire. Such show cause notice, if any, should be issued within six weeks".

In November 2018, the Securities and Exchange Board of India (Sebi) had levied a fine of Rs 2.45 crore on 18 entities collectively referred as Soni Group, for executing trades in violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices)regulation in the matter of Parichay Investments.

The imposed fine was in the range of Rs 5-25 lakh.