Sebi told to expedite order against Pinac

The Securities Appellate Tribunal (SAT) today directed the Securities and Exchange Board of India (Sebi) to expedite the process of passing the final order in the case of Pinac Stock Brokers and one Lopa S Bhavnagari, related to alleged securities market manipulations.

SAT said once the parties give their replies, Sebi should pass the final order within three months from that date.

The issue relates to alleged manipulations in the shares of Tijaria Polypipes by the two entities.

Pinac Stock Brokers and Bhavnagari had approached SAT against Sebi’s interim order prohibiting them from dealing in any securities in the proprietary account as well as entering into any fresh agreement with new clients in their operation as a stock broker.

 

However, in its submission to SAT, the market regulator said the probe in the matter has been completed and show cause notices to Pinac and Bhavnagari were issued in December, last year.

The entities are yet to respond to the notices, it said.

Further, the regulator submitted it would be in a position to pass an order disposing of the matter within a period of three months from the date of receipt of the reply from the entities.

Taking note of Sebi’s submissions, SAT’s member and presiding officer P K Malhotra said, “Since the matter is already under consideration of the board (Sebi), I would not like to interfere in the matter at this stage lest it may affect examination of the case by the board.”

SAT has asked the entities to file their replies as per directions contained in the show cause notice issued to them.  

In addition, SAT directed the regulator “to pass a final order in the matter as expeditiously as possible and in any case within three months from the date of reply, complete in all respects, from the appellants”.