The Hindu Business Line : SAT sets aside SEBI’s order on Bhoruka Fin

Mumbai, July 1 SAT on Tuesday also set aside SEBI’s Rs 1 crore collective penalty on the promoters of Bhoruka Financial Services Ltd (BFSL) in the matter of their dealing with DLF Commercial Developers Ltd on the Magadh Stock Exchange Association (MSEA).

BFSL was listed on the Bangalore Stock Exchange but latter refused transaction of the deal, prompting both parties to approach MSEA. SEBI order passed last year in February had charged BFSL for executing the trades in the sale of the shares of BFSL on the floor of MSEA between August 1 and August 12, 2005, while it didn’t have the statutory recognition as a stock exchange.

SEBI Regulations

SAT order passed by Mr Justice N.K. Sodhi said that appellants cannot be held to have violated SEBI regulations while executing a deal on the MSEA, which was a recognised stock exchange (SEBI cancelled MSEA recognition only in September 2007) though trading was not allowed on its floor because it had not fulfilled certain conditions stipulated by the regulator.

BFSL, a non-banking finance company, held 15 acre of land at Bangalore and wanted to sell it to DLF. .

On Advani Hotels

Securities Appellate Tribunal(SAT) on Tuesday disposed of the appeal made by Advani Hotels & Resorts India Ltd against Delta Hospitality and directed the capital market regulator SEBI to dispose of the complaint by passing a `speaking’ order.

“SAT has directed SEBI to dispose off the complaint by passing a speaking order and communicate the same to the parties,” said a SAT official after the matter came for hearing on Tuesday.

Earlier on June 3 Advani Hotels filed an appeal before SAT against Delta Hospitality (earlier known as Fast Track Impex Pvt. Ltd.) and SEBI relating to the open offer made by Delta for acquisition of shares of Advani Hotels.

The complaint of Advani Hotels is that Fast Track had crossed the 15 per cent equity stake in Advani Hotels long before it had announced the open offer, and that there were other companies acting in concert with Fast Track in purchasing shares of Advani Hotels. In addition, Fast Track had crossed the 5 per cent annual stake limit in acquiring Advani Hotels shares, violating SEBI’s takeover regulations

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