Mithani Investment
Case brief
What is this about?
An appeal against a SEBI order debarring the Appellant for five years for alleged grey market trading and unregistered broking. The Tribunal set aside the order directed against the Appellant, holding that SEBI failed to establish the charge due to the lack of specific evidence cited in the show cause notice or order, denying the Appellant a fair opportunity to rebut the vague allegations.
What did the court decide?
The portion of the SEBI order debarring Mithani Investment from associating with capital market activities was set aside; Respondent permitted to initiate fresh proceedings
BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No. 12/2003
In the matter of:
Mithani Investment
(Through its proprietor Milan J. Mithani) Appellant Vs.
The Securities & Exchange Board of India Respondent
Appearance:
Shri Mahesh P. Sarda
Chartered Accountant
Shri Milan J. Mithani for Appellant
Shri Praveen Trivedi
Issues for consideration
3 issues framed by the court
Whether the charge of indulging in grey market transactions and dealing as an unregistered broker can sustainably be upheld when the show cause notice and impugned order fail to cite specific evidence
Whether the Respondent was justified in issuing a debarment direction under Section 11B of the SEBI Act and Regulation 12 of the FUTP Regulations in the absence of established findings of violation ag
Whether supplementary affidavits filed by the Respondent during appeal proceedings can cure the defect of non-production of material evidence in the original enquiry proceedings.
Parties & counsel
- appellant
Mithani Investment
- appellant
Milan J. Mithani
- respondent
The Securities & Exchange Board of India
Coram
Case details
As recorded by the court registry
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