SAT rejects Triumph Intl plea for interim relief

Our Markets Bureau

Mumbai, Aug 24: The Securities Appellate Tribunal (SAT) on Friday rejected the application of Triumph International Finance India Ltd (TIFIL) to provide interim relief to start its stock broking and merchant banking business.

SAT presiding officer C Achuthan, in the interim order, said TIFIL has not established that there is a prima facie case in its favour. The balance of convenience is also not in its favour. The order further said that the firm has also not established that it would suffer irreparable injury in case the order is not stayed.

TIFIL early this month has approached SAT for seeking an interim stay of the Sebi order which had prohibited it from doing the business of stock broking axnd merchant banking.

Sebi in April this year has debarred TIFIL from doing is business following the market regulator’s prima facie finding that TIFIL was linked to disgraced big bull Ketan Parekh and was involved in alleged stock price manipulation.

TIFIL counsel, appearing before the tribunal, had denied any connection with Ketan Parekh or any role in alleged manipulating the markets. The counsel had stated that TIFIL was in no way controlled, connected or associated with Ketan Parekh.

To further support these facts, he informed SAT that Ketan Parekh was on the company’s board for a short period of three and half months (from Decemeber 16,2000 to March 31, 2001) and even during this period he had not attended a single board meeting.

In addition, TIFIL submitted before SAT that the Sebi order is passed without following the principles of natural justice by not providing the company opportunity to present its case.

However, Sebi counsel refuted these charges and informed SAT that the company was given enough opportunity to put forth its views.
It was provided by making an oral and written submission before Sebi chairman DR Mehta. The firm was also given inspection of the material relied on by Sebi.

On this SAT order says, “The allegations that the Sebi order was passed without following the principles of natural justice is found baseless as the company was given the opportunity both for oral and written submission.”

Sebi counsel also informed SAT that the market regulator has enough evidence to reach a prima facie conclusion that TIFIL was part of the Ketan Parekh group.

SAT is waiting for the Sebi reply before taking up the case again. The reply is expected by September 3 and the next hearing is scheduled on September 18.