The Securities and Appellate Tribunal (SAT), the apellate tribunal of the capital market, has given its first order in accordance with the newly-formulated consent terms of Sebi.
SAT has endorsed the recommendations of the regulator for lowering the penalty of Rs 1 crore to Rs 25 lakh in one of the cases.
SAT said in an order that Luminant Investments Pvt Ltd ( Appellant) challenged the Sebi order dated November 22, 2005, levying a penalty of Rs 1 crore for its failure to furnish information to the investigating officer in response to the statutory summons.
SAT said, ?During the pendency of the appeal, Sebi came out with a circular dated April 20, 2007, laying down guidelines for consent orders and for considering request for compounding of offences.?
In terms of the guidelines, the appellant filed an application dated July 19, 2007, before the Sebi board for the settlement of the matter.
A high-powered advisory committee set up by the regulator has recommended the case for the settlement of the dispute on the appellant paying Rs 25 lakh in accordance with the consent order.
