Varindhaban Forests Ltd.
Case brief
What is this about?
Two appeals challenging a SEBI order debarring appellants operating collective investment schemes from the capital market for five years. The Tribunal upheld the order, finding SEBI validly exercised powers under Regulation 65(e) due to non-compliance with registration or winding-up mandates, rejecting claims of violation of natural justice.
What did the court decide?
Appeals dismissed; impugned debarment order dated 7.12.2000 upheld; appellants barred from operating in capital market for 5 years.
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI
Appeal No.55/2001
In the matter of:
Varindhaban Forests Ltd., Appellant
Vs.
The Securities and Exchange Board of India Respondent No.1 Union of India (Through Secretary Finance) Respondent No.2 Government of Punjab (Through Chief Secretary) Respondent No.3
Appeal No.56/2001
Green Vindraban Farms Ltd., Appellant
Vs.
The Securities and Exchange Board of India Respondent No.1 Union of India (Through Secretary Finance) Respondent No.2 Government of Punjab (Through Chief Secretary) Respondent No.3
Appearance:
Shri H. D. Birdi,
Issues for consideration
3 issues framed by the court
Whether the Securitites and Exchange Board of India had the power under Regulation 65(e) to debar appellants from operating in the capital market for failing to register or wind up existing collective
Whether the impugned debarment order was issued without affording a reasonable opportunity of being heard to the appellants.
Whether the failure to comply with registration or winding up requirements absolved the appellants from the statutory obligation under the SEBI Act and Regulations.
Parties & counsel
- appellant
Varindhaban Forests Ltd.
- appellant
Green Vindraban Farms Ltd.
- respondent
The Securities and Exchange Board of India
- respondent
Union of India
- respondent
Government of Punjab
Case details
As recorded by the court registry
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