Securities Appellate Tribunal (SAT) has directed market regulator Sebi to allow one Anil Dave to sell his shares lying in the account of Grishma Securities and deposit the sale proceeds in an interest-bearing fixed deposit with a nationalised bank.
Securities of Dave, a client of Grishma Securities Private Ltd (GSPL), had been frozen by Sebi during the course of the regulator's investigations in a matter related to role of GSPL in diversion of Tijaria Polypipes' IPO funds.
Dave had sought Sebi's permission to allow him to sell his shares but the same was rejected by the regulator through an order in October, 2014.
Besides, the regulator had said that it would keep the securities held by Dave frozen till the time it receives reports from Financial Intelligence Unit (FIU) and Income Tax Department and accordingly take a final decision.
Following the order of Securities and Exchange Board of India (Sebi), Dave has approached SAT.
"Sebi is directed to permit the Appellant (Dave) to sell the shares of the Appellant lying in the margin money account of the Appellant with Respondent No 2 (Grishma Securities)," SAT said in an order.
"The Appellant on sale of the said shares shall deposit the sale proceeds in an interest-bearing fixed deposit in a nationalised bank and hand over the fixed deposit receipts to the Respondent No 1 (Sebi)," it added.
In October last year, Sebi had imposed a penalty of Rs 25 lakh on Dave for indulging in synchronised trades and also permitting GSPL to use his account as a conduit for diverting funds to other front entities of the stock broker.
Dave had opened a demat account with GSPL in November, 2011.
Subsequently, Sebi had issued prohibitory orders against GSPL and also frozen Dave's demat account in December, 2011, as part of its probe into the Tijaria Polypipes' case.
