REGULATORY · INDIA
Supreme Court questions SEBI probe
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The Supreme Court questioned SEBI for continuing proceedings against former Sterling Biotech directors Nitin and Chetan Sandesara despite a November order that quashed criminal cases after the brothers deposited ₹5,100 crore under a one-time settlement.
Why it matters
A Supreme Court bench of Justices JK Maheshwari and Atul S Chandurkar asked why SEBI continued proceedings after the November 19 quashing order. The November 19 order quashed all criminal proceedings against the Sandesara brothers subject to their depositing an additional ₹5,100 crore as a one-time settlement. Counsel for the Sandesara brothers stated that SEBI had refused to close its probe despite compliance with the settlement. The court also heard an application from local lenders led by State Bank of India seeking disbursal of claim amounts deposited with the court registry by the Sandesara brothers.
Implications
- • SEBI must provide a court-facing justification to continue enforcement proceedings against the former directors.
- • Disbursal of claim amounts deposited with the court registry to local lenders led by State Bank of India is subject to court directions.
Who is affected
- • Capital markets regulator (SEBI)
- • Former company directors (Nitin and Chetan Sandesara)
- • Commercial lenders led by State Bank of India
- • Supreme Court bench (Justices JK Maheshwari and Atul S Chandurkar)
Source
Topics
Law & Public Safety Court Rulings Regulatory Actions Finance & Banking Banking Regulation