The appeal was filed by Agarwal against a Securities and Exchange Board of India (Sebi) order passed in October this year.
However, the tribunal also asked Sebi to reconsider the matter and give an opportunity of hearing to both the parties 'expeditiously'.
"In the circumstances, after hearing both the learned counsel and with their consent, the impugned order is hereby quashed and set aside qua the present appellant (Agarwal) also on the same ground of inordinate and unusual delay of about one year in passing the impugned order by Sebi," SAT said in its order dated November 3.
Sebi had prohibited Agarwal among others from the capital markets for a period of five years for violating PFTUP (Prohibition of Fraudulent Trade Practices) norms.
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In a separate order, SAT has reduced the quantum of monetary penalty imposed by Sebi on Gulab Impex Enterprises from Rs 5 lakh from Rs 9 lakh if the company makes requisite annual disclosures.
"On furnishing the required disclosure, the penalty of Rs 9 lakh imposed on the appellant shall stand modified to Rs 5 lakh to be deposited by the appellant with Sebi within a period of one month thereafter," they added.
It further said, in case the company does not make appropriate disclosure by November 17, 2014, the original penalty will be revived.
In addition, SAT also noted the conduct of the company in approaching Sebi on its own and thereby bringing the violation to the notice of the regulator.
Sebi, in July this year, had slapped the fine on Gulab Impex Enterprises as the company "failed to make timely disclosure from the year 1998 to 2011".