SAT stays trading curbs on Inter Globe Fin,Sanco Industries
The Securities Appellate Tribunal has stayed trading restrictions imposed on Inter Globe Finance and Sanco Industries, which are among the 331 suspected shell companies identified by the government.
Sebi, on August 7, asked stock exchanges to restrict trading in shares of 331 "suspected shell companies", some of which have investments by several well-known domestic and foreign investors.
The move came after the watchdog received the list of such companies from the corporate affairs ministry and many of the 331 firms are under the scanner of the Serious Fraud Investigation Office (SFIO) and the Income Tax Department.
Inter Globe Finance and Sanco Industries had moved the SAT against the Sebi directions.
Following their appeals, the SAT has stayed the trading restrictions imposed on the two companies, according to the two similar worded orders.
"In view of the facts set out in the memorandum of appeal and other documents tendered at the time of hearing relating to annual turnover of the appellant company (Sanco Industries and Inter Globe Finance) for last three years, which even according to Sebi prima facie appear to be correct," SAT said in the order.
"We extend the said stay to the case of the appellant company herein and direct the stock exchanges to reverse their decision in respect of the appellant company as expeditiously as possible," the SAT said.
The tribunal said that this order would not come in the way of Sebi as well as the stock exchanges to investigate the case of these companies and initiate proceedings if deemed fit.
The order in the case of Inter Globe Finance was passed today, while the same for Sanco Industries was passed yesterday.
Hit Kit Global Solutions had also challenged Sebi's last week directive but has now withdrawn it.
"As the appellant has already made a representation to Sebi against the said ex-parte order dated August 7, 2017, Counsel for the appellant on instruction seeks to withdraw the appeal with liberty to pursue the representation filed before Sebi.
"Accordingly, we permit the appellant to withdraw the appeal with liberty to pursue the representation pending before Sebi
"Sebi is directed to dispose of the representation made by the appellant as expeditiously as possible and in any event within a period of three weeks from today," the tribunal said in an order yesterday.
Last week, the tribunal had stayed trading restrictions imposed on eight companies including JKumar Infraprojects and Parsvnath Developers.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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