SAT stays SEBI order against Kishore Biyani

Forum Gandhi Mumbai | Updated on February 15, 2021 Published on February 15, 2021

The Securities Appellate Tribunal (SAT) has granted a stay on SEBI’s order against Kishore Biyani in an insider trading case.

SAT has, however, asked Biyani and others involved in the case to deposit ₹11 crore with SEBI within four weeks, said sources.

The matter was heard before Justice Tarun Agarwala. Future Corporate Resources Limited (FCRL), Future Group’s Kishore Biyani and his brother Anil Biyani had moved an appeal in SAT against SEBI order that barred them from the securities market.

The case pertains to an announcement made by FRL to the exchanges on April 20, 2017. FCRL merged into Suhani Trading and Investment Consultants Private Limited, which resulted in the de-merger of a few businesses of FRL which benefitted the company in a monetary manner.

On February 3, in its 77-page order, the regulator had banned the Biyani bothers and FCRL from accessing the securities market for a period of one year. The market regulator had also restrained the Biyanis from buying, selling, or dealing in the securities of Future Retail Limited (FRL), directly or indirectly, in any manner whatsoever, for two years.

Along with this, the parties were asked to deposit ₹1 crore each within 45 days as a penalty.

They were also asked to jointly and severally disgorge an amount of ₹17.78 crore along with interest at the rate of 12 per cent per annum from April 20, 2020, till the date of actual payment.

According to SEBI, the action was taken by the regulatory authority after it found them in violation of the Prohibition of Insider Trading Regulations, 2015. It had found the Biyanis trading in shares of Future Retail, on the basis of unpublished price sensitive information (UPSI) during March 10-April 20, 2017.

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Published on February 15, 2021
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