The Securities Appellate Tribunal has set aside over Rs 46 lakh fine imposed by Sebi on five promoters of Hydro S&S Industries for allegedly failing to make timely disclosures about changes in shareholding pattern.
In October, Sebi had slapped a total fine of Rs 46.5 lakh on Hydro S&S Industries' five promoters.
The Securities and Exchange Board of India (Sebi) had penalised Vidya Srinivasan, V Srinivasan, Suchitra Murali Balakrishnan, Narayan Sethuraman and Murali Srinivasan Venkataraman.
Appealing against the order, these individuals said there were discrepancies in the show cause notice as well as the supplementary one sent by Sebi to them.
After looking into the submissions, the tribunal has directed the regulator to pass a fresh order in the matter.
"Accordingly, the impugned order in all these appeals is quashed and set aside and the matters are restored to the file of the adjudicating officer for passing fresh order on merits and in accordance with law," SAT in an order dated March 17.
As per Sebi, these individuals had executed certain inter-se transfers amongst themselves on three occasions in March 2011 and October-December 2012 but timely disclosures were not made.
Under takeover regulations, entities are required to make disclosures on changes in shareholding pattern.
