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Judgment
We have heard the learned counsel for the parties. We grant three weeks’ time to the respondent to file a reply. Three weeks thereafter to the
appellants to file rejoinder. The matter would be listed for admission and for final disposal on August 24, 2021.
A penalty of Rs. 5.25 crore plus Rs. 15 lac each has been imposed on the appellants under Section 15HA and 15HB of the Securities and
Exchange Board of India Act, 1992. The finding is that the buyback announcement was made by the appellants in January 2014 was a misleading
announcement without any intent to fulfill it and that it was designed to influence the decision of the investors and induce them to trade in the shares of
the company. The further finding has been given that the appellants have been negligent and should have monitored the trading made by its broker.
We also find that there was an internal note of the respondent which indicated that no fraud has been committed by the appellants. Based on which an
amount of Rs. 143 crore which was collected through buyback arrangement and was subsequently kept in an escrow account.
In view of the aforesaid, we stay the effect and operation of the impugned order provided the appellants deposit a sum of Rs. 2.5 crore before the
respondent within three weeks from today. If the amount is deposited, no further recovery shall be made from the appellants during the pendency of
the appeal.
Parties will take instructions from the Registrar 48 hrs. before the date fixed in order to find out as to whether the appeal would be heard through
video conference or through physical hearing.
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 Private Secretary 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.