The Securities Appellate Tribunal (SAT) of the Securities and Exchange Board of India (SEBI) has rejected an appeal of Ahmedabad-based Parsoli Corporation Ltd seeking a stay on its order upholding a penalty of Rs 4.25 crore on its promoters, till it approached the Supreme Court.
SAT had in its impugned order termed the the case “fraud of the worst kind” on shareholders. In its order of January 25, SAT has also refused to allow any concession in the amount of penalty imposed.
On January 12, SAT had dismissed Parsoli’s appeal (No 146 of 2010) against a ruling by SEBI that the company and its promoters/directors violated several provisions of the regulations, and when caught, they compensated the shareholders by crediting shares in their demat accounts through off-market transactions. The directors and promoters in question are two main promoters and joint-managing directors, who are also brothers — Zafar and Uves Sareshwala. Continue reading
While Indian blue chip companies such as Tata, Reliance, Ambit and the Bombay Stock Exchange have all entered the Islamic asset management space in the last year or so with the launch of Islamic equity funds and the BSE TASIS Shariah 50 Index, the plight of one local company, purporting to be an Islamic finance and brokerage company but whose operations were deemed wholly unethical, has passed almost unnoticed.
On Jan. 12 the Securities Appellate Tribunal (SAT) of the Securities and Exchange Board of India (SEBI), the securities regulator, dismissed Appeal No. 146 of 2010 by Parsoli Corporation Ltd. against a ruling by SEBI that Parsoli and its promoters/directors violated several provisions of the regulations and perpetrated “fraud of the worst kind on the shareholders of this company who were deprived of their shares and when caught, the directors compensated the shareholders by crediting shares in their demat accounts through off market transactions.”
Parsoli could have gone to the Supreme Court of India to appeal against the SAT judgment, but it is unlikely it would go down this route because in such cases appeals are usually lodged immediately. Continue reading