The Securities Appellate Tribunal (SAT) has set aside market regulator the Securities and Exchange Board of India's (Sebi) order against share broking firm Triumph International Finance India for its alleged role in buying shares of Adani Exports in concert with entities promoted by banned scamster Ketan Parekh.
The Sebi in a June 2009 order had imposed Rs 5 lakh fine on Triumph for not making necessary disclosures while buying 5 per cent shares of Adani Exports in 2000, in concert with Ketan Parekh entities, as is mandated by the Sebi takeover code.
However, the SAT found that Triumph was not acting in concert with Ketan Parekh entities and hence set the order aside.
"Merely because the appellant (Triumph) acted as the broker of some of the companies, owned/controlled by Ketan Parekh, does not make it a person acting in concert with those companies," the SAT said in its order.
Ketan Parekh was banned by the Sebi from trading for his manipulations in the stock markets in different scrips, including Adani Exports, during 1999 to 2001-2002.