Mumbai: Division Bench of Bombay High Court comprising Justice A P Shah and Justice S J Vajifdar has directed the Securities and Exchange Board of India (SEBI) to submit its final order in the case of former Bombay Stock Exchange president Anand Rathi, supporting reasons for preventing him from carrying out broking activity in the stock market, by April 23.

The court has directed the capital market regulator and adjourned hearing of the petition, filed by Anand Rathi challenging SEBI's order preventing him from carrying out broking business, till April 24.

The court observed during the hearing of a petition filed by Rathi on Tuesday that the SEBI cannot impose indefinite ban on trading unless there is any material to justify its action.

Rathi had at least 240 bolt terminals spread all over the country that have been affected badly after the SEBI's prevention against his firms from trading in the market.

Advocate G E Vahanvati who appeared on behalf SEBI told the court that SEBI completes its preliminary investigation by April 16 and same would be placed before full board of Sebi on April 23 and submitted. He also said that the market regulator will review the matter considering the material during the investigation at the meeting.

Vahanvati also spelled out three options being considered by SEBI including either to revoke the suspension (against Rathi's firm) completely or allowing him to start trading activities, or to continue with permanent injunction if the SEBI may consider to allow him to trade with certain conditions, after the preliminary report.

The SEBI counsel told the court that the SEBI has taken the action to protect investors and informed the court that the order passed by SEBI is not "punitive order". SEBI has ample power to protect investors which it has used in the case of Rathi.

The capital market regulator has prevented Rathi's firm from trading in the market following his alleged role in leaking out market sensitive information. The capital market regulator also gave post-decisional hearing to Rathi and confirmed its order.

UNI

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