The Hindu Business Line : Drama all the way in Samir Arora case

IN an interesting observation, the Securities Appellate Tribunal (SAT) rapped Mr Bajpai, Chairman, SEBI, for speaking to the media about the Samir Arora case, just after the interim order on Mr Arora was passed and while the matter was pending enquiry.

In an interview, published on September 30, 2003, Mr Bajpai was reported stating, "SEBI was confident about nailing Alliance Capital's former Chief Investment Officer Samir Arora on insider trading charges."

According to Mr Arora's counsel, SEBI continued to give widespread publicity to its actions against Mr Arora and tried to create prejudice against him even after proceedings had been initiated before the tribunal.

Mr Lakhanpal, member, SAT, said, "It was fairly conceded by the learned senior counsel on both sides that such interviews on matters pending adjudication were best avoided in the interest of fair play."

The pronouncement of the order at SAT had all the elements of a Bollywood potboiler - tension, wrath and tears. The courtroom, though sparsely populated, was rife with anxiety about the verdict on this case.

However, when the members of the tribunal walked in, it was only to read out the judgements of other cases. Mr Arora's pronouncement was read after the tribunal reassembled for the third time this afternoon.

Mr Lakhanpal read out the pronouncement. He said that Mr C.A. Sundaram, counsel for Mr Arora, had raised the question of the validity of Section 11 of the SEBI Act, and pointed out that SEBI could only prescribe monetary penalties to deal with violations of securities regulations. On hearing the contentions of the counsel for both sides, the tribunal took the position that SEBI had the relevant powers, in this case.

Mr Arora seemed disappointed; but this was the only piece of bad news for Mr Arora all day.

When the pronouncement was made, a SEBI representative requested the tribunal for a six-week stay.

Mr Justice Rajarathnam, presiding officer of SAT, said, "Please check whether there is any such provision before you make your requests."

SEBI was forced to acknowledge that there were none.

Mr Arora, who was overheard remarking about the protracted tension of the day, broke down on hearing that he was free of all the charges.

"I haven't really made any plans for the future. The carefully laid-out plans have come unstuck in the past. I am just very relieved now," he told Business Line between sniffles.

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Drama all the way in Samir Arora case