The Securities Appellate Tribunal has upheld Sebi's order against S S Forgings & Engineering but has reduced the quantum of penalty imposed on the company by the regulator to Rs 2 lakh from Rs 7 lakh.
SAT has directed the company to pay the revised penalty within 2 months failing which the original penalty (Rs 7 lakh) would be re-imposed.
The case relates to S S Forgings failure to resolve investor grievances against it.
The Securities and Exchange Board of India (Sebi) in September, 2013, had imposed a fine of Rs 5 lakh on S S Forgings for non-redressal of two complaints as well as an additional fine of Rs 2 lakh for failure to submit an Action Taken Report (ATR) to Sebi related to the complaints.
Subsequently, S S Forgings had challenged Sebi's ruling in the matter before SAT.
Noting that S S Forgings had not redressed the complaints for about 2 years, SAT said that it did not "find any legal infirmity" in Sebi's order.
"However, it is admitted position that the appellant had undertaken action towards redressal of 2 investors' grievances after the show cause notice dated July 31, 2013 and during the pendency of present appeal both the grievances have been redressed and ATR has been furnished by the appellant to the satisfaction of Sebi," it added.
Accordingly, SAT said that it was "inclined to reduce the consolidated penalty to Rs 2 lakh...To be paid by the appellant within two months from the date of receipt of copy of this order, failing which the original penalty imposed against the appellant shall revive".
In a separate case, SAT has allowed Swift Tie Up to sell shares in its demat account and deposit the sale proceeds with Sebi, till the time the 5 year capital market ban imposed on the company by the regulator is not completed.
However, the firm will have to furnish list of all shares with Sebi before the sale.
In November, 2013, Sebi had Swift Tie Up restrained from dealing in securities for a period of 5 years.
The firm had filed an appeal with SAT seeking permission to sell the shares held in its demat account and deposit the proceeds to Sebi for the period of debarment.
In an order dated August 28, SAT said that "appeal is disposed of by granting relief...Subject to the appellant furnishing before sale, list of all shares in demat account and shares that are intended to be sold by appellant, the sale proceeds of which are to be deposited with Sebi.
"Sebi is directed to keep the amount so deposited in an interest bearing account," SAT added.
It also noted the submissions of the company that the shares in demat account would be "sold as expeditiously as possible after submitting the list of shares that are lying in the demat account to Sebi".
