Securities Appellate Tribunal
Jik Industries Limited vs Sebi on 30 May, 2018
Author: J.P. Devadhar
Bench: J.P. Devadhar
BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Decision : 30.05.2018
Appeal No. 172 of 2018
JIK Industries Limited
Balkum, Pada No. 3,
Thane, Maharashtra - 400608. ...Appellant
Versus
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National Stock Exchange of India Limited
Exchange Plaza, Plot No. C/1, G Block,
Bandra Kurla Complex,
Bandra (East),
Mumbai - 400 051. ...Respondent
Mr. Paras Parekh, Advocate with Ms. Stuti Shah and Mr. Robin Shah,
Advocates i/b J. Sagar Associates for the Appellant.
Mr. Rahul, Advocate i/b Manilal Kher Ambalal & Co for the Respondent.
CORAM : Justice J.P. Devadhar, Presiding Officer
Dr. C.K.G. Nair, Member
Per : Justice J.P. Devadhar (Oral)
1.Not on Board. Taken up with the consent of the parties.
2. Appellant is aggrieved by the order passed by the Chief of Regulatory of National Stock Exchange of India Limited ('NSE' for short) on May 2, 2018. By that order, inter alia, an independent forensic auditor is appointed to verify the transactions set out therein and further the promoters and directors of JIK Industries Limited are permitted only to buy the securities of JIK Industries Limited but not permitted to sell the said shares.
3. In the impugned order, the discrepancies noticed by the independent auditor and the comments given by the appellant on the said discrepancies 2 are recorded. However, the reason as to why the comments given by the appellant are not accepted and forensic audit is ordered is not recorded, which is not proper.
4. In any event, since forensic audit is to be carried out at the cost of NSE, without going into the merits of the case we direct the forensic audit be completed as expeditiously as possible. It is made clear that order directing forensic audit and imposing restrictions on the promoters and directors of the appellant shall not be treated as stigma on the appellant and the promoters and directors of the appellant. If the promoters and directors of the appellant want to sell the shares of the appellant for any legitimate purpose, then they are at liberty to approach NSE and NSE shall consider the same in accordance with law.
5. Appeal is disposed of in the above terms with no order as to costs.
Sd/-
Justice J.P. Devadhar Presiding Officer Sd/-
Dr. C.K.G. Nair Member 30.05.2018 Prepared and compared by:msb