The Securities Appellate Tribunal (SAT) rejected an appeal by Sterlite Industries for an interim stay on the Securities and Exchange Board of India's (Sebi) order prohibiting the company from entering capital market and starting prosecution of its promoters.
The one-member tribunal, consisting of C Achuthan, said the final disposal of the case will be held on July 2.
The Sebi chairman, in an order on April 19, banned Sterlite from accessing capital market for two years and ordered prosecution of its directors, including Anil Aggarwal, Tarun Jain and Shashikant.
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The market regulator's action was based on the alleged price manipulation in Sterlite scrip during April and May, 1998.
SAT's order says the Sebi probe has revealed a set of persons had cornered a large chunk of the company's shares on BSE and NSE which resulted in distortion in price.
In its appeal, Sterlite counsel C A Sundaram said he was not asking for an interim stay, on prohibiting the company from entering the market and prosecuting the directors, and that the request is to temporarily stay the impugned order as a whole. He said he was prepared to give an undertaking that his parties will not access the capital market till the disposal of the appeal.