The Securities Appellate Tribunal (SAT) has let off Vidyut Investment for its involvement in the securities scam of 2000-01 but has warned the firm to be more careful while dealing in securities lending and borrowing in the future. Vidyut Investment is an investment company belonging to the Ranbaxy Group. The firm was charged by the Securities and Exchange Board of India (Sebi) of aiding and abetting the Ketan Parekh (KP) group which include firms like Panther Investments and Classic Credit.
The three-member SAT panel headed by Justice NK Sodhi, presiding officer (PO), in its order said, ?The fact still remains that the appellant (Vidyut Investments) violated the (lending and borrowing of shares) scheme as already observed. Since the act of the appellant in lending shares to Panther and Classic was an isolated act and is not a continuing wrong, we do not think that it was appropriate to debar the appellant from accessing the capital market for a period of two years. After all, it is an investment company and its business is to invest in the capital market. It is not a KP entity and belongs to a different group altogether. Had it been acting in concert with Ketan Parekh or his entities, the matter would have been different. The appellant has already remained out of the market for almost 18 months under the impugned order.?
Sebi, after conducting the investigation, had ruled that Vidyut Investments be debarred from accessing the capital market for a period of two years.
The Ranbaxy group company preferred an appeal against Sebi.