Nirmal Bang Securities Pvt. Ltd.
Case brief
What is this about?
SAT heard interim appeals against SEBI orders cancelling broker/sub-broker registrations. The court stayed the cancellation for 10 weeks but prohibited appellants from conducting broking business during that period while the substantive appeals remain pending.
What did the court decide?
Stay of the order cancelling registration for 10 weeks, conditional upon appellants refraining from stock broking business during that period.
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI
Appeal No. 54 of 2002 Nirmal Bang Securities Pvt. Ltd. Appellant Vs. The Chairman Securities and Exchange Board of India Respondent Appeal No. 55 of 2002 Bang Equity Broking Pvt. Ltd. Appellant Vs. The Chairman Securities and Exchange Board of India Respondent Appeal No. 56 of 2002 Bama Securities Ltd. Appellant Vs. The Chairman Securities and Exchange Board of India Respondent Appeal No. 57 of 2002 Bang Securities Pvt. Ltd. Appellant Vs. The Chairman Securities and Exchange Board of India Respondent
Appearance:
Shri Janak D. Dwarkadas, Senior Advocate, Shri Shyam Mehta, Advocate Shri Somasekhar Sundaresan, Advocate Shri Berjis Desai, Solicitor For Appellants Shri Kumar L. Desai, Advocate Shri M. Baxi, Advocate Shri Phiroz Mehta Solicitor For Respondent
INTERIM ORDER
These four appeals are directed against the common order dated 30th July, 2002 made by the Respondent whereby the registration granted to the Appellants as Brokers / Sub-Brokers has been cancelled with effect from the date of the order. Appellants in Appeal Nos. 54, 55, and 56 are Brokers. Appellant in Appeal No. 57 is a Sub-Broker. The main charge against the Appellants as per the order is that they “manipulated the prices and depressed market to their advantage on large scale and huge
volumes”. The Respondent therefore, felt that “these entities should not be permitted to carry on activities as stock-broker”.
Issues for consideration
1 issue framed by the court
Whether the operation of the order cancelling registration of the appellants should be stayed pending disposal of the appeals.
Parties & counsel
- appellant
Nirmal Bang Securities Pvt. Ltd.
- appellant
Bang Equity Broking Pvt. Ltd.
- appellant
Bama Securities Ltd.
- appellant
Bang Securities Pvt. Ltd.
- respondent
The Chairman Securities and Exchange Board of India
Case details
As recorded by the court registry
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