The Securities Appellate Tribunal (SAT) has put a stay on the order issued by markets regulator Securities & Exchange Board of India (SEBI) banning Future Group founder Kishore Biyani and some other promoters from the securities market for one year. As an interim meaure, SAT has also directed the Future Group promoters to deposit a sum of ₹11 crore.

“In a hearing held on February 15, 2021, the Securities Appellate Tribunal has stayed the effect and operation of SEBI's order accusing the promoters of the Future Group of insider trading in the context of purchases of Future Retail shares made in March 2017," Future Corporate Resources Private Limited (FCRPL) said in a statement.

SAT will now hear the case further on April 12, 2021.

The February 3 SEBI order is based on its probe of a 2017 case related to breach of insider trading rules. In addition to the ban on trading, SEBI has also imposed a fine of ₹1 crore each on Kishore Biyani, Anil Biyani and FCRPL. The regulator has also asked them to pay up ₹17.78 crore for the wrongful gains made by them by using unpublished price-sensitive information to trade in Future Retail shares.

Soon after the SEBI order, Future Retail Ltd, promoted by Biyani, in a regulatory filing said the ban imposed by SEBI on the company's chairperson "will have no impact on the ongoing Scheme of Arrangement of the company" and that the company understands "that the relevant parties propose to challenge this order in exercise of their statutory right to appeal."

SAT is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the SEBI or by an adjudicating officer under the Act; and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.

Fibre2Fashion News Desk (RKS)

Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.