Securities Appellate Tribunal has set aside a Sebi order against Arohan Trustee Company, which was barred by the regulator and asked to refund Rs 24.50 crore for collecting from investors under the garb of an 'art fund'.
In April, Sebi had barred the company from accessing the securities market "for a period of four years".
According to Sebi, Arohan Trustee Company had sponsored the art fund without obtaining certificate as mandated under CIS norms.
As many as 94 investors had contributed an amount of Rs 24.50 crore to the fund of Arohan Trustee Company, the regulator had said.
Following the order, Arohan Trustee Company approached the tribunal and appealed against the matter.
Citing the case of Osian's Connoisseurs of Art, the firm stated that SAT has considered similar issues and remanded the matter on certain issues for reconsideration.
In the matter of Osian's Connoisseurs of Art, SAT had set aside a direction of Sebi, which ordered the firm to refund Rs 102.4 crore from 656 investors collected by it for one of its art fund schemes and asked the regulator to decide those issues afresh after hearing the appellant and respondent.
However, the tribunal had upheld the regulator's order in respect to barring the firm.
Arohan Trustee Company further stated that on appeal, the Supreme Court by its order dated January 15, 2016 has held that Osian's therein is entitled to raise all contentions before Sebi.
Taking view of these circumstances, the tribunal quashed and set aside the Sebi order and restored the matter to the file of Whole Time Member of Sebi for passing fresh order on merits and in accordance with law.
SAT said: "All contentions of both parties are kept open."
Sebi had asked Arohan Trustee Company to refund the money in three months along with an interest of 10 per cent per annum, from the date of investment till the date of part refunds.
Sebi had conducted a probe in the matter after it came across certain media reports and newspaper articles regarding the mobilisation of funds from the investors under the scheme of 'art fund', with an objective to invest in the works of art.
