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SAT Stays Sebi s Rs 6-crore Fine On NSE
Securities and Exchange Board of India (Sebi), in October, levied a fine of Rs 6 crore on National Stock Exchange (NSE) for allegedly investing in six companies unrelated or non-incidental to the stock exchange business.
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The Securities Appellate Tribunal (SAT) has stayed the Rs 6 crore penalty that markets regulator Sebi had imposed on NSE for allegedly investing in firms unrelated to the stock exchange business.
Securities and Exchange Board of India (Sebi), in October, levied a fine of Rs 6 crore on National Stock Exchange (NSE) for allegedly investing in six companies unrelated or non-incidental to the stock exchange business.
Synopsis
The Securities and Exchange Board of India (Sebi) had accused NSE of violating these rules by purchasing stakes in half a dozen companies including Computer Age Management Systems (CAMS), Power Exchange India (PXIL) and NSDL E-governance infrastructure (NSEIL).
ET Bureau
Mumbai: The National Stock Exchange (NSE) has moved the Securities Appellate Tribunal (SAT) against the capital market regulator’s Rs 6 crore fine for allegedly violating norms governing investments.
The Securities and Exchange Board of India (Sebi) had accused NSE of violating these rules by purchasing stakes in half a dozen companies including Computer Age Management Systems (CAMS), Power Exchange India (PXIL) and NSDL E-governance infrastructure (NSEIL).
December 15, 2020
Case listed for final hearing on January 29
The Securities Appellate Tribunal (SAT) has stayed market regulator SEBI’s fine of ₹6 crore on the National Stock Exchange (NSE) in a matter involving the exchange’s investments in “unrelated businesses”. The NSE had contended that the investments were made by it before SEBI came out with rules requiring its prior permission to invest.
SAT stayed the matter till the time NSE’s appeal was disposed of with a ruling.
The matter has been listed for final disposal on January 29, 2021. According to SAT, a question that arises for consideration is whether the appellant (NSE) as a stock exchange having made investments in six entities are related or incidental to the activities of the bourse.
Can credit rating agencies be liable for defaults? SAT to give its verdict
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Synopsis
Passing an interim order in the matter SAT opined “questions” arise in the matter whether a rating agency can be held liable for a credit default even if all the internal procedures were followed and there is no ‘mala fide’ intention on the part of CRA.
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The Securities Appellate Tribunal (SAT), which hears appeals of securities markets, will render its verdict on liability of credit rating agencies (CRAs) in case of a debt market default. In September, Sebi had imposed a fine of Rs one crore on Brickworks, a CRA for not taking timely action in several instances. In its order, Sebi Said Brickworks had not conducted proper due diligence. Brickworks has now moved SAT seeking relief on this order.