New Delhi: The Supreme Court has quashed the Securities Appellate Tribunal (SAT) decision that let off Ahmedabad-based Opee Stock-Link from charges of manipulating IPO of Jet Airways and Infrastructure Development Finance Company in 2008.
A bench headed by Justice Anil Dave upheld the Sebi’s order disgorging Opee Stock Link of R1.2 crore and barring it from trading for one year.
“Looking at the fact that number of persons, having common address of their demat accounts, selling their shares at the same price to a particular person before listing of shares of a company with a stock exchange is not a normal thing,” the bench said, adding that “the transfer of shares did not comply with the requirements of the provision of either Section 13 or Section 2(i) of the the Securities Contracts (Regulation) Act, 1956. Therefore, the off market trading indulged in by the respondents (Opee) was rightly held to be per se illegal.”
Sebi had found that Opee Stock Link had cornered the retail category shares of Jet Airways and IDFC by using several fictitious demat accounts and thus deprived genuine retail investors from investing in the IPOs.
13/07/16 Indu Bhan/Financial Express
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A bench headed by Justice Anil Dave upheld the Sebi’s order disgorging Opee Stock Link of R1.2 crore and barring it from trading for one year.
“Looking at the fact that number of persons, having common address of their demat accounts, selling their shares at the same price to a particular person before listing of shares of a company with a stock exchange is not a normal thing,” the bench said, adding that “the transfer of shares did not comply with the requirements of the provision of either Section 13 or Section 2(i) of the the Securities Contracts (Regulation) Act, 1956. Therefore, the off market trading indulged in by the respondents (Opee) was rightly held to be per se illegal.”
Sebi had found that Opee Stock Link had cornered the retail category shares of Jet Airways and IDFC by using several fictitious demat accounts and thus deprived genuine retail investors from investing in the IPOs.
13/07/16 Indu Bhan/Financial Express
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