Setting aside a Sebi ruling against KIM Infrastructure & Developers Ltd, Securities Appellate Tribunal today directed market regulator to pass a fresh order within three months in the matter related to collective investment scheme.
The Securities and Exchange Board of India (Sebi) in an order in February 2014 had rejected an application by New Delhi-based KIM Infrastructure seeking registration under collective investment schemes (CIS).
KIM Infrastructure had filed the application in June 2013.
After Sebi's order, KIM Infrastructure approached SAT on the matter.
As per the tribunal, the counsel for KIM Infrastructure said Sebi has rejected the application without hearing it which is violation with the regulation. Further, Sebi's counsel said KIM Infrastructure was not heard in the matter.
Accordingly, SAT has 'quashed and set aside' the order passed by Sebi and directed the market regulator "to pass fresh order on merits and in accordance with law after giving personal hearing to the appellant...As expeditiously as possible and in any event within a period of three months from today."
In a separate case, SAT has directed Sebi to pass a fresh order within two weeks in the matter of Dipin Surana.
Surana sought permission to sell 40,000 equity shares of 8K Miles Software Services Ltd and deposit the sale proceeds in an escrow account. The appeal, however, was rejected by the regulator through an order in September 2014 saying that 'investigation in the matter is still in progress.'
Sebi's order did not specify the reasons as to how sale of shares by appellant would affect the investigation, SAT said.
Accordingly, SAT has quashed and set aside Sebi's order and directed the market regulator "to pass fresh order on merits and in accordance with law after giving personal hearing to the appellant within two weeks from today.
