SAT stays Sebi order against Capetown Mercantile Company

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Press Trust of India: Mumbai, Jul 23 2011, 00:36 IST

Ruling in favour of Capetown Mercantile Company, the Securities Appellate Tribunal (SAT) today stayed a 2009 order by market regulator Sebi barring the firm from accessing the capital markets for its involvement in the case of irregularities by the Pyramid Saimira Theatre Ltd.

In an order dated July 21, the appellate body, however, said that the stay does not amount to any view on the merit of the case against Capetown Mercantile.

“...having regard to the role allegedly played by the appellant (Capetown Mercantile)... and also taking note of the fact that the appellant has remained out of the securities market for a considerable period of time, we are inclined to stay the operation of the impugned order by which the ex parte order has been confirmed against the appellant,” SAT said.

It added that the order passed does not prevent the Securities and Exchange Board of India (Sebi) from “proceeding further in the matter and shall not be taken as an expression of our opinion on the merits of the case. The rights and contentions of both the sides shall remain open”.

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