The Securities Appellate Tribunal (SAT) today set aside penalties totalling Rs 2.25 crore on Golden Tobacco and GHCL Limited imposed by Sebi in a matter related to disclosures of pledged shares by promoter entity.
The Securities and Exchange Board of India (SEBI), through two separate orders last year, had slapped a fine of Rs 1.25 crore on GHCL and Rs 1 crore on Golden Tobacco.
Consequently, the companies approached SAT against the Sebi's order.
"We set aside penalty of Rs 1 crore and Rs 1.25 crore imposed on each appellant (Golden Tobacco and GHCL) by Sebi on ground that the appellants have failed to disclose to the exchanges, fact that the shares of the appellant company held by the respective promoter/promoter group have been encumbered pursuant to an order passed by the arbitrator in the arbitration proceedings between the promoter/promoter group and some third party," SAT said in an order today.
