Relief for Prabhat Dairy as SAT quashes Sebi order to deposit Rs 1,292 cr

Tribunal asks the company to deposit Rs 500 cr in separate escrow account within 10 days

The Securities Appellate Tribunal (SAT) quashed the Securities and Exchange Board of India’s (Sebi’s) order directing Prabhat Dairy to deposit Rs 1,292 crore in connection with a dispute over payment to shareholders.

Instead, the tribunal directed the company to deposit just Rs 500 crore in a separate escrow account within 10 days, asking it to not utilise the money till a decision is taken on distributing the amount to its minority shareholders.

In an ex-parte order on October 20, Sebi directed Prabhat Dairy to deposit Rs 1,292 crore in an escrow account and pulled up the company for not cooperating with forensic