SAT Sets Aside Penalty Imposed By SEBI On Directors Of P G Electroplast As "Grossly Disproportionate"

Arunima Bhattacharjee

1 Sept 2019 10:17 AM IST

The SAT was of the view that the AO had exceeded its power in imposing the maximum penalty under section 15J of the SEBI Act. Finding the penalty as “grossly disproportionate to the violation”, the impugned order imposing the penalty of 1 cr. each on the directors was set aside.

The Securities and Appellate Tribunal while hearing an appeal by the directors of PG Electroplast against SEBI's order, has held that the AO (Adjudication Officer) by imposing a penalty grossly disproportionate to the violations, had exceeded its power. SEBI noticed fluctuation in the price of the scrips of the P.G. Electroplast Ltd. ('PGEL') following the day the shares were...

SAT Sets Aside Penalty Imposed By SEBI On Directors Of P G Electroplast As "Grossly Disproportionate"

Arunima Bhattacharjee

The SAT was of the view that the AO had exceeded its power in imposing the maximum penalty under section 15J of the SEBI Act. Finding the penalty as “grossly disproportionate to the violation”, the impugned order imposing the penalty of 1 cr. each on the directors was set aside.

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