SAT Sets Aside Sebi Order Against AKG Securities

New Delhi: Securities Appellate Tribunal (SAT) has set aside a Sebi order against AKG Securities and Consultancy, which was fined Rs 10 lakh for indulging in fictitious self trades in shares of Onelife Capital Advisors Ltd (OCAL).

In June 2014, Sebi had penalised the company, which was allegedly involved in fictitious self trades in shares of OCAL on its listing day on stock exchanges as well as few days thereafter.

Self trades are those trades where the buyer and the seller are the same entities and which do not result in change of beneficial ownership. Such trades are fictitious in nature as they create artificial volume in the scrip.

Following the order by the Securities and Exchange Board of India (Sebi), AKG Securities approached the tribunal to appeal against the matter.

Quashing the order, the tribunal said that in similar circumstances, the Adjudicating Officer of Sebi in a separate case of AKG Securities has held that the charges do not stand established.

"However, the said decision has not been considered while passing the order impugned in the present appeal," it added. Accordingly, the order by Sebi is "quashed and set aside and the matter is restored to the file of the Adjudicating Officer of Sebi for passing fresh order on merits and in accordance with law".

Meanwhile, OCAL had come out with an IPO and its shares were listed on NSE and BSE on October 17, 2011.

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