Chandigarh-based firm PGF today informed the Supreme Court that it was trying to work out a compromise with market regulator Sebi over a 10-year ban handed down for running investment schemes without undergoing the mandatory registration process.
Counsel for PGF made the disclosure during hearing of an appeal challenging the Securities Appellate Tribunal's decision to uphold Sebi's ban on the company. PGF's counsel informed the apex court that the firm was engaged in talks with the Securities and Exchange Board of India over the issue and sought some time.
Admitting the plea, a three-judge bench headed by Chief Justice S H Kapadia adjourned the matter and scheduled the next hearing after eight weeks.
Earlier, in July last year, the Supreme Court had directed PGF, which had collected money from the public for investment schemes without registering itself with Sebi, to return the sum appropriated from investors.
Sebi had banned the firm in 2002 after finding that it was running investment schemes without mandatory registration and directed PGF to return investors' money.
Later, in 2008, Sebi found that the money was allegedly not paid back by the firm, following which the market regulator banned PGF and its directors from accessing the stock market for 10 years.
Sebi had also stopped a second investment scheme launched by PGF for the sale, purchase and development of agricultural land.
This was later challenged by PGF before the Securities Appellate Tribunal, which also upheld the decision of Sebi.
Subsequently, the firm moved the Supreme Court, which had asked it to submit documents so it could ascertain the nature of the firm's business and take a decision on Sebi's directive.
