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Priyasha Meven Finance Limited & Others v/s Securities & Exchange Board of India SEBI Bhavan

    Appeal No. 398 of 2016 with Misc. Application No. 367 of 2016 & Appeal No. 437 of 2016

    Decided On, 29 January 2018

    At, SEBI Securities Exchange Board of India Securities Appellate Tribunal

    By, THE HONOURABLE MR. JUSTICE J.P. DEVADHAR
    By, PRESIDING OFFICER
    By, THE HONOURABLE MR. JOG SINGH
    By, MEMBER & THE HONOURABLE DR. C.K.G. NAIR
    By, MEMBER

    For the Appellants: Pesi Modi, Senior Advocate with Deepak Dhane, Advocate i/b. Joby Mathew & Associates, Advocates. For the Respondent: Pradeep Sancheti, Senior Advocate with Chirag Bhavsar, i/b. MDP & Partners, Advocates.



Judgment Text

J. P. Devadhar, Presiding Officer

(Oral)

Misc. Application No.367 of 2016 in Appeal no.437 of 2016

1. There is a delay of 57 days in filing Appeal no.437 of 2016. For the reasons stated in the Misc. Application no.367 of 2016 the delay is condoned.

2. Misc. Application No.367 of 2016 is disposed of accordingly with no order as to costs.

Appeal Nos.398 & 437 of 2016

1. Appellants in these two appeals are aggrieved by the confirmatory order passed by the Whole Time Member of Securities and Exchange Board of India (‘SEBI’ for short) on 22nd August, 2016. By that order, the directions contained in the ex-parte order passed on 20th August, 2015 have been confirmed pending further investigation.

2. Grievance of the appellants is that the inordinate delay on part of SEBI in completing the investigation has seriously affected the business of the appellants. However, in view of the statement made by counsel for SEBI that the investigation is almost complete and the report is expected within a month, counsel for the appellants submitted that the appeals may be disposed of with such directions as this Tribunal deems it fit and proper.

3. Accordingly both the appeals are disposed of with the following directions:-

(a) SEBI shall complete the investigation and issue show cause notice, if any, on or before 31st March, 2018. The show cause notice shall be accompanied by all documents on which SEBI wants to rely.

(b) If the show cause notice is issued, the appellant shall file their reply within a period of 2 weeks from the date of receiving the show cause notice.

(c) Thereafter, SEBI shall give an opportunity of hearing to the appellants within 4 weeks from the date of receiving reply to the show cause notice and pass a final order within 4 weeks from the date on which the hearing concluded.

(d) It is made clear that if show cause notice is not issued on or before 31st March, 2018, the ex-parte ad-interim order dated August 20, 2015 and the confirmatory order dated August 22, 2016 shall come to an end forthwith.

(e) Similarly even after issuing the show cause notice on or before 31st March, 2018, if SEBI fails to pass an order within 4 weeks from the date of concluding personal hearing, then also the ex-parte ad-interim order dated A

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ugust 20, 2015 and the confirmatory order dated August 22, 2016 shall come to an end forthwith. (f) It is made clear that no extension of time will be granted. 4. Both the appeals are disposed of on the above terms with no order as to costs.
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