The Securities Appellate Tribunal (SAT) has set aside a Sebi order that had barred one Dhirenkumar Dharamdas Agarwal from the securities market for five years.
The appeal was filed by Agarwal against a Securities and Exchange Board of India (Sebi) order passed in October this year.
However, the tribunal also asked Sebi to reconsider the matter and give an opportunity of hearing to both the parties 'expeditiously'.
"In the circumstances, after hearing both the learned counsel and with their consent, the impugned order is hereby quashed and set aside qua the present appellant (Agarwal) also on the same ground of inordinate and unusual delay of about one year in passing the impugned order by Sebi," SAT said in its order dated November 3.
"On remand, Sebi shall reconsider and dispose of the matter after affording an opportunity of hearing to the parties expeditiously and as per law. Needless to say that no observation is being made on the merit of the case," it added.
Sebi had prohibited Agarwal among others from the capital markets for a period of five years for violating PFTUP (Prohibition of Fraudulent Trade Practices) norms.
In a separate order, SAT has reduced the quantum of monetary penalty imposed by Sebi on Gulab Impex Enterprises from Rs 5 lakh from Rs 9 lakh if the company makes requisite annual disclosures.
"The peculiar facts and circumstances of the case, therefore, we are convinced that ends of justice would be met with by disposing of this appeal with a direction to the appellant (Gulab Impex Enterprises)to make the required disclosure to the stock exchanges," SAT member Jog Singh and A S Lamba said in an order.
"On furnishing the required disclosure, the penalty of Rs 9 lakh imposed on the appellant shall stand modified to Rs 5 lakh to be deposited by the appellant with Sebi within a period of one month thereafter," they added.
It further said, in case the company does not make appropriate disclosure by November 17, 2014, the original penalty will be revived.
The company's counsel has stated that "the company shall file proper disclosure to the stock exchanges within a period of two weeks although it is claimed that such disclosures have already been made in the past."
In addition, SAT also noted the conduct of the company in approaching Sebi on its own and thereby bringing the violation to the notice of the regulator.
Sebi, in July this year, had slapped the fine on Gulab Impex Enterprises as the company "failed to make timely disclosure from the year 1998 to 2011".
