The Securities Appellate Tribunal has set aside a Sebi order against a broker, who was fined Rs 22 lakh for fraudulent trading in the shares of SKS Logistics.
In August 2014, the Securities and Exchange Board of India (Sebi) had penalised PJ Chaudhury, a broker registered with BSE, for violating norms and fraudulent trading in the SKS Logistics shares.
On the basis of two earlier orders, pertaining to two different entities, the tribunal has set aside Sebi's order against Chaudhury while directing the regulator to pass a fresh ruling depending on merits of the case.
In the matter pertaining to SKS Logistics, apart from Chaudhury, a similar amount of fine was also imposed on Vijay J Thakkar, a sub-broker of VSE Stock Services at BSE and NSE.
Appealing against Sebi orders, both individuals had approached the tribunal.
Following Thakkar's appeal, the tribunal, on February 2, set aside the ruling stating that inordinate delay in passing the impugned order by Sebi has caused serious prejudice to the appellant. SAT had also asked the watchdog to pass a fresh order.
During the hearing of Choudhury's case, his counsel cited the orders of the tribunal in the matter of Thakkar and Amrut Securities. The counsel sought that SAT set aside Sebi's order against Chaudhury too.
"Accordingly, impugned order dated August 28, 2014 is quashed and set aside and the matter is restored to the file of the Adjudicating Officer for passing fresh order on merits and in accordance with law," SAT said in an order dated March 29.
In the case pertaining to Amrut Securities, the tribunal, on March 16, had set aside the regulator's order citing its ruling in the matter related to Thakkar.
