The Madras High Court on Friday granted an interim stay of the operation of an order of the Securities and Exchange Board of India (SEBI) of October 9 restraining Polaris Financial Technology Ltd., Anna Salai here, from accessing the securities market. The SEBI had also further prohibited the company from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner for two years.

Justice N.Paul Vasanthakumar passed the interim order on a petition by the company’s Chairman and Managing Director, Arun Jain. The alleged offence related to trading on the basis of unpublished sensitive information. A Consent Order having been already passed, no fresh order could be passed by SEBI as the same would be illegal. The SEBI’s action was wholly unconstitutional.

The respondent’s counsel sought time to file counter. The petitioner’s counsel, Abudukumar Rajarathinam submitted that in such circumstances, the implementation of SEBI’s order may be stayed. Following this, the Judge said there would be an order of interim stay. The matter has been posted for further hearing on November 20.

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