w w w . L a w y e r S e r v i c e s . i n

M/s. Emkay Global Financial Services Limited & Another v/s The National Stock Exchange of India Limited Exchange Plaza, Mumbai & Others

Company & Directors' Information:- NATIONAL STOCK EXCHANGE OF INDIA LTD. [Active] CIN = U67120MH1992PLC069769

Company & Directors' Information:- EMKAY GLOBAL FINANCIAL SERVICES LIMITED [Active] CIN = L67120MH1995PLC084899

Company & Directors' Information:- K. M. GLOBAL FINANCIAL SERVICES PRIVATE LIMITED [Active] CIN = U65910MH2011PTC214241

Company & Directors' Information:- GLOBAL I T SERVICES PRIVATE LIMITED [Active] CIN = U72200DL2004PTC127805

Company & Directors' Information:- GLOBAL E-SERVICES PRIVATE LIMITED [Active] CIN = U17116MH1947PTC005768

Company & Directors' Information:- S G STOCK SERVICES LIMITED [Active] CIN = U67120PB1994PLC015367

Company & Directors' Information:- A R PLAZA PRIVATE LIMITED [Active] CIN = U45201DL2002PTC113870

Company & Directors' Information:- A. S. PLAZA PRIVATE LIMITED. [Active] CIN = U70100WB2008PTC122079

Company & Directors' Information:- S & K PLAZA PRIVATE LIMITED [Strike Off] CIN = U45201WB1997PTC085621

Company & Directors' Information:- R S PLAZA PRIVATE LIMITED [Active] CIN = U70109WB1998PTC086927

Company & Directors' Information:- THE INDIA COMPANY PRIVATE LIMITED [Active] CIN = U74999TN1919PTC000911

Company & Directors' Information:- S K GLOBAL SERVICES LIMITED [Strike Off] CIN = U74140WB2008PLC130221

Company & Directors' Information:- K & S GLOBAL SERVICES PRIVATE LIMITED [Active] CIN = U93000DL1996PTC082621

Company & Directors' Information:- I - GLOBAL SERVICES PRIVATE LIMITED [Active] CIN = U72900GJ2010PTC059452

Company & Directors' Information:- GLOBAL EXCHANGE COMPANY PRIVATE LIMITED [Active] CIN = U65929KL1995PTC009556

Company & Directors' Information:- S J PLAZA PRIVATE LIMITED [Active] CIN = U70109WB1997PTC083153

Company & Directors' Information:- K V M PLAZA PRIVATE LIMITED [Active] CIN = U70101KL1986PTC004612

Company & Directors' Information:- S V PLAZA PVT LTD [Active] CIN = U45201WB1993PTC060261

Company & Directors' Information:- INDIA CORPORATION PRIVATE LIMITED [Active] CIN = U65990MH1941PTC003461

Company & Directors' Information:- G N PLAZA PRIVATE LIMITED [Active] CIN = U45201WB1999PTC090867

Company & Directors' Information:- PLAZA INDIA PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC055773

Company & Directors' Information:- GLOBAL SERVICES (C & F ) PRIVATE LIMITED [Active] CIN = U60300MH1982PTC027712

Company & Directors' Information:- P S PLAZA PRIVATE LIMITED [Active] CIN = U45200WB2007PTC113368

Company & Directors' Information:- N K PLAZA PRIVATE LIMITED [Active] CIN = U45203WB2006PTC108313

Company & Directors' Information:- M. K. GLOBAL SERVICES PRIVATE LIMITED [Strike Off] CIN = U72300MH2014PTC259803

Company & Directors' Information:- E-EXCHANGE SERVICES PRIVATE LIMITED [Active] CIN = U70100MH2012PTC226074

Company & Directors' Information:- GLOBAL INDIA SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120MH2013PTC242295

Company & Directors' Information:- P G PLAZA PRIVATE LIMITED [Active] CIN = U45201DL2003PTC119689

Company & Directors' Information:- STOCK EXCHANGE COMPANY LIMITED [Strike Off] CIN = U99999KA1924PLC000128

    Appeal Nos. 134 of 2015 & 135 of 2015

    Decided On, 26 March 2015

    At, SEBI Securities Exchange Board of India Securities Appellate Tribunal

    By, MEMBER

    For the Appellant: Darius Khambata, Senior Advocate with Pesi Modi, Senior Advocate, Somasekhar Sundaresan, Abhishek Venkatraman, Dhaval Kothari, Advocates i/b J. Sagar Associates, Zal Andhyarujina, Advocate with Ajai Achuthan, Advocates. For the Respondents: R1, E.P. Bharucha, Senior Advocate with Rashid Boatwalla, Aditi Kamath, Advocates i/b Manilal Kher Ambalal & Co., R2, Shashank V. Choudhary, R3, Prakash K. Shah, Advocates.

Judgment Text

J.P. Devadhar, Presiding Officer (Oral)

1. In these two appeals, the appellants have challenged the order passed by the Standing Committee of NSE on Annulment on December 04, 2014. By the said order the Committee has declined to take on record the settlement proposed by the parties and declined to release payment as per the settlement proposed by the parties.

2. Dispute in the present case, relates to annulment of trades that were executed on October 05, 2012 where in both parties to the trade were found to have violated the norms laid down by SEBI/NSE. On an application filed by M/s. Emkay Global Financial Services Limited (‘Emkay’ for short) seeking annulment of trades, NSE by its order dated April 29, 2013 rejected the said application. Challenging the said order Emkay had filed Appeal No. 64 of 2013. While setting aside the said order and allowing the appeal by way of remand on August 26, 2014, we had directed NSE to pass fresh order on annulment application after hearing the concerned parties.

3. When the matter was taken up for fresh hearing, parties submitted settlement proposal which was rejected by NSE on ground that it has no power to take such settlement proposal. Hence the parties to the settlement proposal have filed the above appeals.

4. Before us, Mr. Bharucha Learned Senior Advocate appearing on behalf of NSE on instructions fairly stated that the settlement proposal put up by the parties is not in contravention of any of the rules/regulations/bye laws of NSE. However, he submitted that in the absence of any power, NSE could not entertain the settlement.

5. In these circumstances, since the settlement is bonafide and is not violative of any provisions of SEBI/NSE, without going into the question as to whether NSE had power to take settlement on record or not, in the peculiar facts of the present case, we, in exercise of powers conferred under rule 21 of the Securities Appellate Tribunal (Procedure) Rules, 2000 direct NSE to take on record the settlement proposed by the appellants and release the withheld payment to the parties in terms of the settlement. NSE is directed to release the withheld payment as expeditiously as possible and in any event within a period of two weeks from today.

6. Both the appeals relating to annulment of trades are disposed of accordingly. This order will not come in the way of the Disciplinary Action Committee in continuing the proceeding pending bef

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ore it against the parties to the trades in question herein. 7. Order of NSE dated December 04, 2014 impugned herein is modified accordingly to the extent setout hereinabove. 8. Both appeals are disposed of in the above terms with no order as to costs.