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SAT sets aside Sebi order against Alka Securities promoter

SAT for the second time has set aside Sebi's order against Alka Securities promoter Mahendra Pandey

Press Trust of India Mumbai
Last Updated : Jun 27 2013 | 7:15 PM IST
The Securities Appellate Tribunal (SAT) has asked market regulator Sebi to reconsider a case related to alleged violation of disclosure norms by a promoter of Alka Securities Ltd.

The tribunal, in its order on June 26, said that vital documents which had been relied upon by Sebi to come to the conclusion that Alka Securities' promoter Mahendra Pandey was guilty of violation of the norms "were admittedly not" supplied to him "either with show cause notice or during the course of adjudication proceedings".

"This is evidently violation of principles of natural justice in as much as the appellant was not given an opportunity to confront these documents and to make his effective and proper defense on the same," SAT said.

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"Without expressing any view on the merits of the case, we remand the matter back to the respondent (Sebi) for reconsideration after supplying the additional documents to the appellant, after seeking his reply thereto and affording him reasonable opportunity of hearing, the learned adjudicating officer may pass an appropriate order as per law," it added.

The tribunal observed that since "it is an old matter", therefore, Sebi should "make an endeavour to expedite to conclude the adjudication proceedings" and Pandey should cooperate with the regulator in early conclusion of the case.

SAT for the second time has set aside Sebi's order against Alka Securities' promoter Mahendra Pandey.

In 2011, SAT had asked Sebi to proceed afresh in the case on the ground that the findings of the adjudicating officer did not clarify if Pandey was an officer of Alka Securities.

In December 2012, Sebi had imposed a penalty of Rs 10 lakh on Pandey. The market regulator's earlier order too had slapped Rs 10 lakh fine for alleged violation of disclosure norms.

In its order in 2012, Sebi had said it is evident that there was a change in the shareholding of Pandey as he sold more than 25,000 shares of Alka Securities on three occasions and also bought more than 25,000 shares of the company on four occasions.

As per Sebi norms Pandey was required to make the necessary disclosures regarding the change in shareholding pattern to the company and the stock exchange.

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First Published: Jun 27 2013 | 7:13 PM IST

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