The Securities Appellate Tribunal has quashed the directions passed by the market regulator SEBI against the television anchor Hemant Ghai and family to deposit ₹3.90 crore, allegedly made unlawfully.
Quashing the SEBI’s order, Justice Tarun Agarwala, Presiding Officer, SAT said the whole-time member of SEBI would hear the matter within six weeks from the date of filing the reply by the appellant and order shall be passed within two months thereafter.
“We are in agreement with the contention of the appellant that the restraint order cannot continue indefinitely. The fact that whether the appellant has violated the SEBI laws is yet to be adjudicated and, therefore, on prima facie basis the restraint order cannot continue indefinitely otherwise it would become arbitrary and in violation of the appellants fundamental right to trade and do business,” the SAT said in its order on Wednesday.
SEBI had banned Ghai, his wife and mother from accessing the capital markets for indulging in fraudulent trading activity. It was observed that Jaya Hemant Ghai (wife) and Shyam Mohini Ghai (mother) had undertaken a large number of Buy-Today-Sell-Tomorrow trades during the relevant period in synchronisation with the recommendations made in the 20-20 show.
Shares were bought on the previous day to the recommendations being made on the stock show and sold immediately on the recommendation day, SEBI had said in its order last year