Amulya Leasing And Finance Ltd. vs Sebi

Date of Decision : 12.09.2017

Appeal No. 219 of 2017

Amulya Leasing and Finance Limited 37, Hargobind Enclave, Vikas Marg, Delhi - 110092. ...Appellant

Versus

BSE Limited 25th Floor, P J Towers, Dalal Street, Mumbai - 400001. ...Respondent

Mr. Pradeep Sancheti, Senior Advocate with Mr. Saurabh Bachhawat, Mr. Amit Bikram Dey and Ms. Mrunmaee Kotpaliwar, Advocates i/b Mindspright Legal for the Appellant.

Mr. P.N. Modi, Senior Advocate with Mr. Manish Chhangani, Advocate i/b Khaitan & Co. for the Respondent.

CORAM : Justice J.P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member

Per : J.P. Devadhar (Oral)

1.

Appellant is aggrieved by the notice issued by BSE Limited on July

28, 2017 wherein it is stated that in furtherance to the earlier notices dated

February 23, 2017 and March 3, 2017 respectively, trading in the securities

of the appellant company which are moved from Graded Surveillance

Measure (GSM) Stage II to GSM Stage III will be suspended w.e.f. July 31,

2017 and shall be made available for trading from August 7, 2017 onwards

on weekly basis.

2

2. It is contended on behalf of the appellant that the decision of the BSE

jointly with SEBI that there were abnormal price rise in the scrip of the

appellant which is not commensurate with financial health and fundamentals

like earnings, book value, fixed assets, net worth, P/E multiple etc. is

unsustainable for the reasons set out in the memo of appeal. It is further

contended on behalf of the appellant that the representations made by the

appellant from time to time have been rejected by the BSE without

assigning any reasons and hence the impugned action of BSE are in

violation of the principles of natural justice.

3. Admittedly, the impugned actions have been taken against the

appellant without hearing the appellant. In these circumstances, we direct

the appellant to make representation within one week from today setting out

the grounds on the basis of which the appellant contends that GSM ought

not be applied to the case of the appellant. If such a representation is made

by the appellant within one week from today, then BSE shall consider the

same and pass appropriate order thereon within a period of 4 weeks from the

date of receiving the representation from the appellant. It would be open to

the BSE to seek any clarification in the matter from SEBI, if deemed fit.

4. Appeal is disposed of in the aforesaid terms with no order as to costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Dr. C.K.G. Nair Member 12.09.2017 Prepared and compared by:

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