Securities Appellate Tribunal (SAT) has reduced the quantum of penalty imposed by Sebi on Jay Energy and S Energies Ltd to Rs 5 lakh from Rs 45 lakh.
The penalty was imposed by Securities and Exchange Board of India (Sebi) in March 2012 on Jay Energy and S Energies for failure to resolve investor complaints within stipulated time.
Subsequently, the company had approached SAT challenging the rulings of the market regulator in the case.
In its order dated May 7, SAT said the grievances which were to be redressed by the company "on the date of passing of the (Sebi's) adjudication order dated March 30, 2012 have now been redressed".
Further, it noted that the company "has undertaken to redress newly received 25 investors grievances within a period of 8 weeks from today, we deem it proper to reduce penalty from Rs 45 lakh to Rs 5 lakh to be paid by the appellant to the respondent within a period of 4 weeks from today," SAT said.
In its submissions to SAT, Jay Energy and S Energies had submitted that it is a defunct company since last 14 years but despite that had taken steps from time to time to redress the investor grievances.
Meanwhile, in a separate order, SAT has asked one Sanjay Jethilal Soni to pay Rs 20,000 for filing an appeal before the tribunal against Sebi's order with a delay of 729 days.
Soni had been imposed with a penalty of Rs 10 lakh by the market regulator on October 21, 2011 but did not file an appeal against the order within the stipulated time.
"Though no case is made out for condoning delay, looking to the fact that the applicant had contested the show cause notice by appearing before the adjudication officer and penalty of Rs 10 lakh is imposed upon the applicant, in the interest of justice we deem it proper to condone the delay, subject to payment of cost," SAT said.
"Accordingly, delay of 729 days in filing the appeal is condoned subject to payment of cost of Rs 20,000 which counsel for the applicant on instruction states the applicant would pay the same to the respondent within a period of two weeks from today," it added.
