SEBI Penalizes SAT ₹5 Lakh for 'Lax Handling' in Unfreezing Kirloskar Family's Demat Account

SEBI Penalizes SAT ₹5 Lakh for 'Lax Handling' in Unfreezing Kirloskar Family's Demat Account

05 Dec, 2023

SEBI Penalizes SAT ₹5 Lakh for 'Lax Handling' in Unfreezing Kirloskar Family's Demat Account

 

The Securities Appellate Tribunal (SAT) has penalized the Securities and Exchange Board of India (SEBI) with a ₹5 lakh fine due to its negligent handling of the demat accounts of five Kirloskar family members. This penalty comes after SEBI failed to take action, engaging in a blame game with NSDL despite tribunal orders to unfreeze the accounts last year.

The SAT order criticized SEBI, stating that its approach contradicted the spirit of the SEBI Act and displayed a lack of concern for the appellants' (Kirloskar family) interests. The tribunal directed SEBI to pay the cost within two weeks, emphasizing SEBI's responsibility to ensure compliance with tribunal orders.

The case originated from allegations of fraud in dealings with Kirloskar Brothers Ltd (KBL) shares in 2010, resulting in SEBI barring the appellants from the securities market for six months in 2020. However, the SAT stayed the order in December 2020, though the demat accounts remained partially frozen.

Despite the SAT quashing SEBI's order in October 2022, the Kirloskars' KIL shares remained frozen. Their attempts to get SEBI to direct NSDL to unfreeze the shares were met with alleged silence from the regulator.

In its final order, SAT highlighted a blame game between SEBI and NSDL, pointing out communication lapses and unaddressed emails regarding compliance with the tribunal's directives. This negligence resulted in the prolonged freezing of the appellants' shares.

The Kirloskars sought relief from SAT once more this year, urging directions to unfreeze their KIL shares. The tribunal's observation shed light on SEBI and NSDL's failure to adhere to orders, emphasizing the consequential suffering faced by the investors due to this non-compliance.

 

 


Related News

Reliance Partners with BLAST to Expand Esports Business in India

03 Apr, 2025

Reliance’s wholly-owned subsidiary, Rise, has partnered with BLAST Esports to…
Read More
Reliance in Talks with OpenAI for ChatGPT Partnership in India

26 Mar, 2025

Mukesh Ambani's Reliance is in discussions with OpenAI and Meta…
Read More
Blackstone Makes $1.2 Billion Offer for AkzoNobel's India Paint Business

19 Mar, 2025

According to reports, international investment giant Blackstone has made a…
Read More
India Becomes Top Investment Partner in London’s £27B Growth Plan

10 Mar, 2025

London has unveiled a new £27 billion growth plan to…
Read More
Isolated EU Seeks India’s Support as Global Alliances Rapidly Shift

03 Mar, 2025

Europe is recalibrating its global partnerships as geopolitical challenges mount.…
Read More
PM Modi Invites French Businesses to Invest in India's Future

13 Feb, 2025

India is inviting French businesses to invest, with Prime Minister…
Read More

© 2025 Business International News. All rights reserved | Powered by Cred Matters.