SAT gives split verdict in Sebi-PNB Housing case; interim order to continue

Sebi's main contention was that it had power to regulate transfer of securities under section 24 of the Companies Act

The Securities Appellate Tribunal (SAT) has given a split verdict in the appeal filed by PNB Housing Finance against the market regulator’s directive that restrained the mortgage lender from going ahead with the preferential allotment of shares to a bunch of investors unless the valuation was done by an independent valuer.

The matter was heard by a two-judge Bench comprising Presiding Officer Justice Tarun Agarwala and Judicial Member Justice M T Joshi. In the absence of a consensus judgment, SAT's interim order -- prohibiting PNB Housing from disclosing the result of the June 22 EGM (extraordinary general meeting) vote -- will