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The Securities Appellate Tribunal (SAT) has directed market regulator SEBI to allow one Anil Dave to sell his shares lying in the account of Grishma Securities and deposit the sale proceeds in an interest-bearing fixed deposit with a nationalised bank.
Securities of Dave, a client of Grishma Securities Pvt Ltd (GSPL), had been frozen by SEBI during the course of the regulator’s investigations in a matter related to the role of GSPL in the diversion of Tijaria Polypipes’ IPO funds. Dave had sought SEBI’s permission to allow him to sell his shares but the same was rejected by the regulator through an order in October, 2014. Following this, Dave approached SAT.
“SEBI is directed to permit the Appellant (Dave) to sell the shares of the Appellant lying in the margin money account of the Appellant with Respondent No 2 (Grishma Securities),” SAT said in an order.
In October last, SEBI had imposed a penalty of ₹25 lakh on Dave for indulging in synchronised trades and also permitting GSPL to use his account as a conduit for diverting funds to other front entities of the stock broker.
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