Factorial Master Fund vs Sebi
- CitationAppeal No.391 of 2014
Ratio decidendi
The rule this decision rests on
The ex-parte ad-interim order and the confirmatory order, having been made subject to a direction that SEBI issue a show-cause notice within a stipulated time, lapse by operation of that direction where SEBI fails to issue the notice within the time fixed; the appellant thereupon becomes entitled to access the securities market in accordance with law. Failure to issue a show-cause notice within the time stipulated by the Tribunal does not bar SEBI from issuing a show-cause notice later, where new facts adverse to the appellant come to its knowledge.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date : 8/7/2015
Appeal No.391 of 2014
Factorial Master Fund ... Appellant
Versus
Securities and Exchange Board of India ... Respondent
Mr. Somasekhar Sundaresan a/w Mr. Paras Parekh and Mr. Dhaval Kothari, Advocates for the Appellant.
Mr. Vikram Nankani, Senior Advocate a/w Mr. Tomu Francis, Advocate for the Respondent.
ORDER:
1. This appeal was disposed of on May 8, 2015.
2. By a praecipe, this matter is mentioned by SEBI.
3. Counsel for SEBI submits that in the aforesaid order dated May 8, 2015,
it was recorded that if SEBI fails to issue show-cause notice, if any, by
July 7, 2015, the ex-parte ad-interim order dated June 5, 2014 and confirmatory
order dated October 16, 2014 shall come to an end. Since SEBI could not issue
show-cause notice within the stipulated time, both the aforesaid orders of SEBI
have come to an end and consequently Appellant would be entitled to access
the Indian securities market in accordance with law. Counsel for SEBI further
submits, failure to issue show-cause notice within the time stipulated in the
order of this Tribunal dated May 8, 2015, should not come in the way of SEBI
in issuing a show-cause notice to the Appellant hereafter, if any new facts
adverse to the Appellant come to the knowledge of SEBI. 2
4. Accordingly, it is made clear that since SEBI has failed to issue a show-
cause notice within the time stipulated in the order dated May 8, 2015, both the
ex-parte ad-interim order dated June 5, 2014 and confirmatory order dated
October 16, 2014 have come to an end and consequently Appellant would be
entitled to access the Indian securities market in accordance with law. It is
further clarified that failure on part of SEBI to issue show-cause notice within
the time stipulated in the order dated May 8, 2015, shall not come in the way of
SEBI in issuing a show-cause notice if any new facts adverse to the Appellant
come to the knowledge of SEBI.
5. Praecipe is disposed of accordingly.
Sd/-
Justice J.P. Devadhar Presiding Officer
Sd/-
Jog Singh Member
8/7/2015 Prepared & compared by-ddg
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