SAT gives a fine to Sebi for alleged failures in the decision
NEW DELHI: The Securities Appeal Court (SAT) imposed a fine on the regulator Sebi by an order of an adjudicating officer that resulted in litigation and harassment for a former BGIL Films u0026 Technologies official.
It is a rare case in which the SAT has penalized the regulator for alleged lapses.
The order came in an appeal filed by Pooja Mahna, a former BGIL Films compliance officer.
An adjudicating officer of Sebi had a penalty of Rs 50,000 on Mahna, for alleged lapses in making disclosures under the insider trading norms, in October 26, 2018.
Mahna (appellant) resigned on February 19, 2010 and ceased to be in service on March 2, 2010. She did not participate in the company's board meeting held on February 23, 2010.
Despite this admitted position and the adjudication officer observing that the benefit of the doubt should be granted to the appellant, (the adjudicating officer) he still imposed a penalty of Rs 50,000 (only Rs. 50,000), the court said.
In an order dated June 28, the court said that the appellant had to submit to this litigation and face harassment for almost a year and a half and that a substantial part of the fee paid to an ombudsman was spent to draft the appeal.
... the appellant is entitled to the costs that we calculate in Rs 50,000. Said cost of Rs 50,000 will be paid by the defendant through a draft complaint to the appellant ..., says the order.
While canceling the October 2018 order, the court said that the sanction was totally unjustified and can not be upheld, especially when there is also evidence that the president of the company had confirmed that the appellant did not participate in the meeting of the board of directors. held on February 23, 2010.