The Securities Appellate Tribunal has dismissed the plea of IndiaNivesh Capitals against SEBI’s order that slapped a fine of Rs 7 lakh on it for failing to make shareholding disclosures within the stipulated time.
The Securities and Exchange Board of India in March had imposed a penalty on the company for the delay of more than 16 months in making disclosures.
IndiaNivesh Capitals (erstwhile Jupiter Enterprises Ltd) approached SAT saying that the decision of the market regulator was ‘arbitrary and unreasonably excessive’
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In an order passed on Tuesday, SAT said that “in the present case, penalty imposable upon the appellant for failure to make disclosures (under SEBI’s norm)...would come to more than Rs 1 crore for the delay of 16 months and 6 days.”
However, SEBI after taking into consideration all mitigating factors has imposed penalty of Rs 7 lakh as against penalty imposable at Rs 1 crore, which can’t be said to be arbitrary or unreasonably excessive, SAT noted.
It said the company having failed to comply with the disclosure requirements can’t escape the penalty for the violations committed by it.
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SAT said it sees no reason to interfere with the order passed by SEBI and dismissed the company’s appeal.