Sridhar K. & Ors. vs Sebi
- CitationAppeal No.142 of 2023
Ratio decidendi
The rule this decision rests on
The amendment to Regulation 7(2)(a) of the SEBI (Prohibition of Insider Trading) Regulations, 2015 applies retrospectively, so that a disclosure violation under that provision may be penalised by reference to the amended requirement even where the trades pre-date the amendment. This principle is adopted from the Tribunal's earlier decision in Sudhir Bapusaheb Devkar v. SEBI, the controversy here being squarely covered by it, and the impugned penalty orders are accordingly quashed on that basis.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Decision: 7.2.2023
Misc. Application No.23 of 2023 And Appeal No.142 of 2023
Sridhar K. Plot no.20, ACP Nagar, Bagalur Road Hosur, Krishnagiri-635129. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant. Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent. With Misc. Application No.24 of 2023 And Appeal No.143 of 2023
Anbazhagan Thiyagarajan Plot no.99, Gopi Gardens, Krishna Nagar, Hosur-635126. ...Appellant 2
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent
Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant.
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
With Misc. Application No.26 of 2023 And Appeal No.145 of 2023
Saravanan 19/39, Titan Township, Mathigiri, Hosur. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent
Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant.
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
With Misc. Application No.27 of 2023 And Appeal No.146 of 2023
R. Udhayakumar 1A/98A, 7th Cross, Krishna Nagar, 3
Hosur-635126. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent
Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant.
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
With Misc. Application No.28 of 2023 And Appeal No.147 of 2023
Kannan S. Mi-20, Avalappalli Hudco Hosur, Krishnagiri, Tamilnadu 109. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent
Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant.
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
With Misc. Application No.40 of 2023 And Appeal No.159 of 2023 4
Thavaselvi C 1 Cross, Shanthi Nagar (West) 22/46 D/2, Hosur, Krishnagiri, Tamilnadu, 635109. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent
Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant.
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
With Misc. Application No.45 of 2023 And Appeal No.164 of 2023
Deepak Kumar Block no.14, House No.475, Dr. Ambedkar Nagar, New Delhi - 110062. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent
Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant.
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
With Misc. Application No.46 of 2023 5
And Appeal No.165 of 2023
Ajay Singh Vill-munra, post-Bangidhar, Tahsil-Salt distt-Almora, Uttarkhand. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C-4, A G Block, Bandra-Kurla Complex, Mumbai - 400 051. ...Respondent
Mr. Kunal Katariya, Advocate with Mr. Sahebrao Wamanrao Buktare, Ms. Ashmita Goradia, Advocates and Mr. Ravi Vijay Ramaiya, CA i/b. Shah & Ramaiya for the Appellant.
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member
Per: Justice Tarun Agarwala, Presiding Officer (Oral)
1.
For the reasons stated in the applications, the delay
in the filing of the appeals is condoned. The
applications are allowed.
2. Even though separate orders have been passed the
issue is common and, consequently, these appeals are
being taken up together. The Adjudicating Officer has
passed an order imposing a penalty of Rs.1 lakh for 6
non-disclosure of the trades executed by the appellants
which was found to be in violation of Regulations
7(2)(a) of the Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015
(hereinafter referred to as 'PIT Regulations').
3. In Appeal no.654 of 2022, Sudhir Bapusaheb
Devkar v. SEBI decided on 10th October, 2022 this
Tribunal held that amendment in Regulation 7(2)(a) of
the PIT Regulations would apply retrospectively.
4. The controversy involved in the present appeals is
squarely covered by the decision of this Tribunal. In
view of the aforesaid, the impugned orders are
quashed. The appeals are allowed with no order as to
costs.
5. This order will be digitally signed by the Private
Secretary on behalf of the bench and all concerned
parties are directed to act on the digitally signed copy
of this order. Certified copy of this order is also 7
available from the Registry on payment of usual
charges.
Justice Tarun Agarwala Presiding Officer
Ms. Meera Swarup Technical Member RAJALAKS Digitally signed by HMI RAJALAKSHMI HARISH HARISH NAIR 7.2.2023 NAIR Date: 2023.02.10 12:07:48 +05'30' RHN
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