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2013 (9) TMI 914 - HIGH COURT OF BOMBAY
Petition for Permission to Undertake Business as a Stock Exchange - Validity of Section 4 SCR Act and Section 11(1) and 19 of SEBI Act – Held that:-
Whether the Petitioner was a fit and proper person for the grant of recognition, the finding which had been arrived at in the impugned order was inter alia based on a conclusion as to the illegality of the buyback agreements on the ground that they were forward contracts, which is found to be erroneous in the present judgment - The effect of the non-disclosure of the buyback agreements to SEBI should be considered having regard to the fact that a genuine attempt has been made by the promoters by tendering an undertaking to the Court that their shareholding together shall not exceed five per cent of the equity capital, notwithstanding the exercise of the options - The application filed by the Petitioner shall be reconsidered afresh in terms of the observations contained in this judgment. Upon remand, a fresh decision shall be arrived at after furnishing the Petitioner an opportunity of being heard.