Gold Multifab Limited
Case brief
What is this about?
The Securities Appellate Tribunal allowed an appeal against SEBI's order debarbing appellants from capital markets access for contravening Sections 69, 73(3A), and 77 of the Companies Act. The Tribunal held that SEBI lacked jurisdiction under Section 11B of the SEBI Act to enforce these specific Companies Act provisions, requiring separate proceedings under the Companies Act instead.
What did the court decide?
The impugned order passed by SEBI under Section 11B of the SEBI Act, directing prohibition of capital market access based on Companies Act violations, is set aside.
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI
Appeal No.115/2002
In the matter of:
1. Gold Multifab Limited
2. Alok Kalawat
3. Priti Bhatia
4. Vivek Bhatia Appellants
Vs.
1. Chairman,
Securities and Exchange Board of India
2. C. M. Mehra
3. R. K. Kakkar Respondents
Appearance: Shri Vipin Kamadi, Advocate For Appellants
Issues for consideration
3 issues framed by the court
Whether SEBI could invoke Section 11B of the SEBI Act to pass directions for contraventions of Sections 69, 73(3A), and 77 of the Companies Act, 1956.
Whether the impugned order was within the scope of the show cause notice which charged violations of the Companies Act.
Whether Section 55A of the Companies Act empowers SEBI to administer violations of the Companies Act by invoking powers under the SEBI Act.
Parties & counsel
- appellant
Gold Multifab Limited
- appellant
Alok Kalawat
- appellant
Priti Bhatia
- appellant
Vivek Bhatia
- respondent
Chairman, Securities and Exchange Board of India
- respondent
Case details
As recorded by the court registry
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