Hyderabad: The Securities Appellate Tribunal on Friday directed Sebi to pass a fresh order in the Satyam case with respect to the quantum of punishment given to the erstwhile company's founder B. Ramalinga Raju and four others.
While agreeing with Sebi’s finding that the individuals violated regulations, the tribunal said the decision to uniformly restrain all the appellants from accessing the securities market for 14 years “without assigning any reasons is unjustified”.
The tribunal's ruling came on the pleas filed by Mr Ramalinga Raju, Mr B. Rama Raju, V. Srinivas, G. Ramakrishna and Mr V.S. Prabhakara Gupta (appellants) against the Sebi's order passed in July 2014, wherein these individuals were barred from the securities market for 14 years.
Besides, they were asked to return '1,849 crore in unlawful gains with 12 per cent interest.
In an order today, the tribunal said the decision of Sebi’s Whole Time Member in “uniformly restraining all the appellants from accessing the securities market for 14 years without assigning any reasons is unjustified”.
Similarly, the quantum of illegal gains directed to be disgorged by each appellant is based on grounds which are mutually contradictory and also without application of mind, the tribunal added.
“...we set aside the impugned order to the extent it relates to the period for which the appellants are restrained from accessing the securities market and the quantum of illegal gains directed to be disgorged by the appellants and remand the matter to the file of the Whole Time Memberof Sebi for passing fresh order on merits and in accordance with law,” it said.
The tribunal has asked Sebi to pass a fresh order within four months.
