High court pulls up Sebi for not complying with its order – Times of India

MUMBAI: Markets regulator Sebi is required to act in public interest, the Bombay high court said on Friday, castigating the regulatory body for not complying with an order passed by the court in October.
A division bench of Justices G S Kulkarni and Jitendra Jainsaid such an approach by Sebi would cause a dent in the confidence reposed in the public body by investors.The HC had in October directed Sebi to provide certain probe documents to minority shareholders of a company. The company and Sebi challenged this order in the Supreme Court, which dismissed the appeals in November.
The petitioners are minority shareholders of Bharat Nidhi and had made various complaints to Sebi accusing the company of violation of securities laws. Sebi had then initiated investigations into the same, issued a show-cause notice to the company and passed a settlement order, which has now been revoked.
The petitioners’ case is that neither the investigation report nor any relevant documents were supplied to them. The petitioners alleged that the investigation being done by Sebi was a farce.
Sebi on Friday told the HC that since the settlement order has been revoked, nothing survives in the present petitions.

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