Market regulator Sebi opposes plea filed by Kirloskar Oil Engines in SAT

The advisory by Sebi on disclosure of DFS was administrative, thus the plea is non-maintainable, says Sebi

In the ongoing dispute within the Kirloskar family, the Securities and Exchange Board of India (Sebi) on Friday submitted to the Securities Appellate Tribunal (SAT) that its advisory to Kirloskar Oil Engines (KOEL) was administrative in nature and thus non-appealable.

 

The tribunal has given six weeks to Sebi to file its response in the matter. The next hearing is scheduled for April 7.

 

The court has given KOEL the liberty to approach SAT in case there is “a subsequent development” in the matter, said a legal representative.

 

KOEL had filed the plea in SAT against an advisory by Sebi to disclose a 2009 Deed of Family Settlement (DFS), which Kirloskar Brothers contends should be disclosed.

 

The agreement outlined the distribution of ownership, management, and control of various listed and unlisted Kirloskar entities among different branches of the family.

 

KOEL and KBL, both publicly listed companies, are directly involved in the dispute.

 

A day earlier, Kirloskar Brothers (KBL) had sought intervention in SAT in the appeal filed by KOEL. If the intervention is allowed, then KBL will also get to argue its stance in the appeal.

 

A legal representative said that the intervention appeal is yet to be allowed and will be taken up in the next hearing.