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The Supreme Court ruled that escrow release under Regulation 15B(8) of the Buyback Regulations does not preclude independent PFUTP fraud proceedings, as the inquiries operate in distinct fields. The Court remitted to SAT for fresh adjudication, directing resolution of trading data discrepancies and contradictory SEBI reports within six months.
SAT affirmed SEBI's two-year market debarment and penalties on Omaxe Ltd., its promoters and former CFOs for round-tripping and misstating accounts. The decision underscores that debarment is a proportionate sanction for corporate fraud, binding listed firms and key managerial personnel.
The SAT ruled that the conditions in sub-clauses (i)-(iii) of SEBI’s Regulation 27(1) bind not only the promoter’s direct entities but also borrowers, subsidiaries and associates linked to the promoter. This interpretation broadens the scope of prohibited rating assignments for credit rating agencies, exposing them to liability for ratings tied to any promoter-related borrowing.
The Securities Appellate Tribunal ruled that the 15-day period for a rival bid under SEBI’s Regulation 20(1) is triggered by the acquirer’s Detailed Public Statement and cannot be shortened by any exemption. This strict timing applies to all takeover contests, affecting bidders and target companies alike.
The Supreme Court ruled that regulatory compliance under SEBI (Mutual Funds) Regulations, 1996 is non-negotiable, even if investors benefit from breaches. Penalties for Kotak Mahindra AMC and Trustee were upheld for lack of due diligence, unauthorized maturity extensions, and inadequate disclosures, reinforcing fiduciary duty over investor outcomes.
Bombay High Court rules that commodity futures contracts with negative settlement prices are binding under SEBI and MCX regulations, superseding general contract law principles. The judgment reinforces market integrity by validating derivative-specific settlement mechanisms, even when they deviate from traditional sale of goods norms.