NSDL appeals to SAT against Sebi directive in 6-yr-old IPO scam case
The Sebi board decided recently to release the orders passed by two of its former board members which was earlier declared by the regulator as null and void.
By ET Bureau |
MUMBAI: The National Securities Depository, or NSDL, has appealed to the Securities Appellate Tribunal ( SAT) against Sebi’s order to comply with the directions of a two-member bench against the depository, relating to an IPO scam over six years ago, in which scores of retail investors were cheated after thousands of demat accounts were opened under fictitious names by a few stock market operators.
The Sebi board, following the directions of the Supreme Court, decided recently to release the orders passed by two of its former board members which was earlier declared by the regulator as null and void.
The board had specially constituted an independent panel comprising its non-wholetime members to ring fence Sebi’s proceedings against NSDL from any involvement by its former chairman CB Bhave (previous head of NSDL) and whole-time members.
The order passed by the twomember panel had held that NSDL did not discharge its responsibilities cast on it. As the depository is a statutory entity, it cannot allow any laxity of the system, the two-member board committee, comprising Mohan Gopal and V Leeladhar, said.
Both are no longer on the board of Sebi now. On Friday, the appellate tribunal headed by presiding officer Justice NK Sodhi after admitting the plea, adjourned the case to November 8. Law firms K Ashar & Co and J Sagar Associate are representing Sebi and NSDL.
The Sebi board, following the directions of the Supreme Court, decided recently to release the orders passed by two of its former board members which was earlier declared by the regulator as null and void.
The board had specially constituted an independent panel comprising its non-wholetime members to ring fence Sebi’s proceedings against NSDL from any involvement by its former chairman CB Bhave (previous head of NSDL) and whole-time members.
The order passed by the twomember panel had held that NSDL did not discharge its responsibilities cast on it. As the depository is a statutory entity, it cannot allow any laxity of the system, the two-member board committee, comprising Mohan Gopal and V Leeladhar, said.
Both are no longer on the board of Sebi now. On Friday, the appellate tribunal headed by presiding officer Justice NK Sodhi after admitting the plea, adjourned the case to November 8. Law firms K Ashar & Co and J Sagar Associate are representing Sebi and NSDL.
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