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Judgment
We have heard Shri Somasekhar Sundaresan, the learned counsel for the appellant and Shri Venkatesh Dhond, the learned senior counsel
appearing for the respondent. A penalty of Rs. 1,80,10,000/- has been imposed upon the appellant for non adherence to leverage and exposure limits
while granting the margin trading facility. As per the impugned order, the circular of SEBI dated August 1, 2017 has been violated. This circular allows
a person to take a loan from promoters or the directors. In the instant case, we find that the appellant had taken a loan from the promoters group. The
short question which arises for our consideration is, whether a promoter group can be included in the definition of promoter as defined in the
Companies Act / SEBI Regulations. This requires consideration.
We accordingly direct the respondent to file a reply within three weeks from today. Three weeks thereafter to the appellant to file a rejoinder. The
matter would be listed for admission and for final disposal on August 27, 2020.
We also direct all the parties to approach the Registrar of this Tribunal 48 hours before the date fixed in order to find out as to whether the present
appeal would heard through video conference or through physical hearing depending on the prevailing situation.
Considering the aforesaid, we stay the effect and operation of the impugned order provided the appellant deposits 50% of the amount of the penalty
within three weeks from today which shall be kept in an interest bearing Escrow account by the respondent and would be subject to the result of the
appeal. Misc. Application is accordingly disposed of.
The present matter was heard through video conference due to Covid-19 pandemic. At this stage it is not possible to sign a copy of this order nor a
certified copy of this order could be issued by the registry. In these circumstances, this order will be digitally signed by the Presiding Officer on behalf
of the bench and all concerned parties are directed to act on the digitally signed copy of this order. Parties will act on production of a digitally signed
copy sent by fax and/or email.