Sachi Aggarwal vs Sebi

Sachi Aggarwal 31, CCI Chambers, Dinshaw Vacha Road, Mumbai - 400 020. ...Appellant

Versus

1.

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

2. Axis Bank Limited New Marine Lines Branch, Mumbai Ground Floor, Harchandrai House, 81 Queens Road, MK Marg, Mumbai - 2.

3. Neeli Aggarwal 31, CCI Chambers, Dinshaw Vacha Road, Mumbai - 400 020. ...Respondents

With Appeal No. 93 of 2015 Sneha Aggarwal 31, CCI Chambers, Dinshaw Vacha Road, Mumbai - 400 020. ...Appellant

Versus

1. Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

2. Axis Bank Limited New Marine Lines Branch, Mumbai Ground Floor, Harchandrai House, 81 Queens Road, MK Marg, Mumbai - 2.

3. Neeli Aggarwal 31, CCI Chambers, Dinshaw Vacha Road, ...Respondents Mumbai - 400 020.

2

Mr. Joby Mathew, Advocate with Mr. Deepak Dhane, Advocate for the Appellant in Appeal Nos. 92 and 93 of 2015.

Mr. J.P. Sen, Senior Advocate with Mr. Mihir Mody and Mr. Rushin Kapadia, Advocates i/b K Ashar & Co. for Respondent No. 1 in Appeal Nos. 92 and 93 of 2015.

None for Respondent Nos. 2 and 3 in Appeal Nos. 92 and 93 of 2015.

CORAM : Justice J.P. Devadhar, Presiding Officer A.S. Lamba, Member

Per : J.P. Devadhar (Oral)

1. Appellant has filed these two appeals alleging inaction on part of

Securities and Exchange Board of India (SEBI) in considering the

representations made by the appellant on January 7 and 8, 2015 and also on

January 22, 2015.

2. Facts relevant for the purpose of these two appeals are that whole

time member of SEBI had passed ex-parte ad-interim order on December 4,

2014 whereby several entities / persons including Mr. Anilkumar Aggarwal

and Mrs. Neeli Agarwal who are father and mother of appellant were

restrained from buying, selling or dealing in securities in the securities

markets, either directly or indirectly, in any manner, till further directions.

3. As a result of the above order, the depository participant namely Axis

Bank Ltd. (Respondent No. 2) has blocked operations in the Beneficiary

Account No. 15236604 and Beneficiary Account No. 12704460 of the

appellant wherein appellant is the first holder and Mrs. Neeli Aggarwal

mother of the appellant is the second holder. 3

4. According to the appellant, shares and other securities deposited in

the said beneficiary accounts belong to the appellant and not to her mother

and, therefore, the Respondent No. 2 is not justified in blocking operation in

the aforesaid Beneficiary Accounts of the appellant. In support of the above

contention several documents are produced.

5. Admittedly, representations made by the appellant to the depository

participant (Respondent No. 2) as well as SEBI have not been considered till

date. Learned counsel for SEBI, on instruction, states that SEBI would issue

a show cause notice in that behalf and pass appropriate orders on the

representation made by the appellant.

6. Accordingly, SEBI is directed to issue show cause notice to the

appellant and after giving an opportunity of hearing pass appropriate order

on the representations made by the appellant as expeditiously as possible

and in any event within a period of one month from today.

7. Both appeals are disposed of in above terms with no order as to costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

A.S. Lamba Member

27.02.2015 Prepared and compared by:

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