 "SC sets aside Bombay HC order imposing Rs 80 lakh fine on Sebi, NSE, BSE")
The Supreme Court on Monday set aside an order by the Bombay High Court which had imposed a cost of Rs 80 lakh on the Securities and Exchange Board of India (Sebi), the National Stock Exchange (NSE), and BSE for freezing the demat accounts of a father-son duo.
The matter has been remanded to the High Court for hearing.
The petition has been restored to the original file for disposal. "Let the matter be heard (by the Bombay High Court) for passing an interim or final order," the Supreme Court said.
Following an order by Sebi in 2017 against Shrenuj & Company for alleged violations, the demat accounts of Mumbai residents Pradeep Mehta and his son Neil Mehta were frozen. The son’s father-in-law was the chief promoter of Shrenuj & Co.
The father-son duo had submitted to the Bombay HC that they were neither involved in the functioning of the company nor were they ever a part of the management, even in an advisory capacity.
There was an error on the part of the HC in disposing of the petitions finally while the matter was reserved after arguments, noted the SC.
Also Read
In its order dated August 26, the HC had declared the Sebi order illegal and invalid, and allowed Mehta and his son to “deal” with all their shares held in the demat accounts.
The SC has remanded the case back to the Bombay High Court. The matter may now be re-heard in the HC, said legal experts, depending on the prayers of the applicants.
"It will be open to the parties to move the HC afresh for the grant of reliefs," said SC. The apex court added that the HC may take the matter for interim relief or dispose of the appeals finally.
Additional Solicitor General N Venkatraman appeared for the regulatory bodies in the case.