Securities Appellate Tribunal, Mumbai
Bellary
Steel & Alloys Ltd.
v.
Securities
& Exchange Board of
Justice
N.K. Sodhi, Presiding Officer
Arun
Bhargava and Utpal Bhattacharya, Member
Misc.
Application No. 28 of 2007
And
Appeal No. 156 of 2007
November
19, 2007
Regulation 4
of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to
Securities Market) Regulations, 2003 – Prohibition of manipulative, fraudulent
and unfair trade practices – On receiving complaint against appellant-company,
SEBI ordered investigations during pendency of which, it prima facie
appeared that some irregularities had been committed by appellant by issuing
duplicate shares to some of its original allottees knowing well that some had
been pledged by said allottees with complainant by way of additional security -
Considering serious nature of allegations, SEBI passed an ex-parte order
directing appellant not to issue any further shares or alter its share capital
in any manner till further directions – Appellant objected that Board had no
power to issue such directions; and that 2003 Regulations did not apply to
facts of same case – Whether it was too premature to record any finding on
issues raised by appellant because investigations were still pending and, accordingly,
Board was tobe directed to conclude investigations expeditiously and decide
objections of appellant – Held, yes
M.V.V. Ramana for the Appellant.
Dr. Poornima Advani and Vinaya Kumar G.S. for the
Respondent.