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Update on Appeal before Honble Securities Appellate Tribunal ("SAT"), SEBI

| Updated on November 18, 2011 Published on November 18, 2011

Helios and Matheson Information Technology Ltd has informed BSE that the Company had filed an appeal before Honble Securities Appellate Tribunal ("SAT") being Appeal No. 69 of 2011 challenging the Order dated January 31, 2011 passed by the Adjudicating Officer, Securities and Exchange Board of India (SEBI) imposing monetary penalty of Rs. 25,00,000/- each for the alleged violation of provisions of :

(i) SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations 2003 ("FUTP Regulations").

(ii) SEBI (Prohibition of Insider Trading) Regulations 1992 ("PIT Regulations")

Honble SAT has vide its Order dated November 16, 2011, inter alia, set aside the Order of the Adjudicating Officer relating to alleged violation of provisions of FUTP Regulations and has held that the Adjudicating Officer SEBI was wrong in holding that the company has misled the investors by stating that the deal between the company and vMoksha entities was complete when it was not complete in its entirety. Consequently, Honble SAT set aside the penalty of Rs 25,00,000/- imposed by the Adjudicating Officer for the said violation.

With regard to charges of violation of PIT Regulations, Honble SAT has held that the finding of the Adjudicating Officer that the deal between the company and vMoksha entities was not a cash deal is incorrect. Honble SAT has upheld the finding of the Adjudicating Officer that there was non-disclosure regarding the second leg of transaction relating to proposed issue of redeemable preference shares. However, Honble SAT has reduced the penalty to Rs 15,00,000/- on the Company.

Source : BSE - >www.bseindia.com

Published on November 18, 2011
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