Neha Lashit Sanghvi vs Securities And Exchange Board Of India

We have heard the learned senior counsel for the parties. Connect with Appeal No. 257 of 2023. Let a reply be filed by the respondent within three weeks from today. Rejoinder may be filed within three weeks thereafter. The matter would be listed for admission and for final disposal on May 16, 2023.

The issue relates to insider trading. One of the questions which arises for consideration is, whether the burden of proof has been discharged by SEBI or whether the burden or the onus is required to be discharged by the appellant to the extent that he had access of the UPSI. Further, the issue whether the appellant, being closely associated with Rakesh Jhunjhunwala would come within the parameters of the definition of “a connected person” under Regulation 2(1)(g) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 or “insider” under the Regulation 2(1)(g)(ii) of the PIT Regulations.

In view of the aforesaid, we direct the appellant to deposit the disgorgement amount of Rs. 49 lacs and penalty amount of Rs. 15 lacs within three weeks from today. If the said amount is deposited, the effect and operation of the order in so far as it relates to the debarment shall remain stayed during the pendency of the appeal. The amount so deposited will be subject to the result of the appeal.

This order will be digitally signed by the Private Secretary on behalf of the bench and all concerned parties are directed to act on the digitally signed copy of this order. Certified copy of this order is also available from the Registry on payment of usual charges.