Mumbai: In a rare instance, the Securities and Exchange Board of India (Sebi) is at the receiving end of a penalty from the Securities Appellate Tribunal (SAT).
In an order in the matter of Adventz Finance Pvt. Ltd, SAT imposed a cost of Rs.1 lakh on Sebi for delay in passing a final order. In an earlier order on 6 May, SAT had directed Sebi to pass a final order in the matter by 24 June.
“Although Sebi gave an opportunity of hearing to the appellant on June 21, 2016, no order was passed till June 24, 2016, the date on which seven weeks from May 6, 2016 expired,” said SAT in the order dated 15 July. Moreover, SAT noted that Sebi did not seek an extension on the deadline that was set by the former.
“Since the appellant is made to run around… we disposed of the appeal in the aforesaid terms subject to payment of costs quantified at Rs.1 lakh, to be paid by Sebi to the appellant within one week from today,” said SAT in the order.
SAT has also directed that a copy of the order be forwarded to the finance ministry and Sebi chairman U.K. Sinha.
Following the SAT order, Sebi is likely to file a petition in the tribunal for a review, said two people familiar with the development.
“Sebi will file a review petition in the matter as certain facts have not been highlighted to SAT,” said one of the persons.
The second person confirmed the development without going into details. Both did not want to be identified.
An email sent to Sebi did not elicit any response till the time of going to press.