A division bench of the high court comprising Justice AP Shah and S Vajifdar, who heard the petition filed, refused to grant interim relief sought by the petitioner, saying the Sebi has the necessary powers and jurisdiction to give such orders and that it will not be prudent on the part of the court to intervene at this point of time.

However, the court asked the Sebi counsel to file the affidavit on Monday next the various steps the market regulator has taken in this regard, when the petition would come up for further hearing.

Sebi has restrained four firms belonging to Mr Rathi, from conducting broking business in the wake of the `Rathi tapes' controversy recently. Mr Virat Tuljapulkar, who appeared on behalf of Mr Rathi, pleaded that Sebi has already completed the inquiry on the tapes controversy a few days back, but has scheduled hearing in the matter only on March 21 and 22. Mr Tuljapulkar said his client will unnecessarily be kept away from conducting broking business and as a result, several clients, many of who were small investors, would suffer. Mr Rathi is alleged to have leaked critical information, which he sought from the surveillance department of the BSE, to a bear cartel.

Acting on this information, this cartel, is said to have hammered down the market on March 2, which saw the Sensex crash 177 points. The conversation between Mr Rathi and one of the surveillance department employee, was recorded in the hard disks was later seized by the Sebi.