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2015 (7) TMI 702 - AT - Companies LawRequest for Interim order / relief - SEBI order to restrain from dealing in securities in the Indian Securities Market (including through Offshore Derivative Instruments) - To restrain from accessing the Indian Securities market directly or indirectly - As SEBI needs off shore assistance, needs 4 to 5 months for completing the investigation - Held that:- There can be no dispute that the appellant has suffered serious prejudice on account of restraint order which is operation for nearly one year. No doubt that under Section 11(4)/11B of SEBI Act, SEBI is empowered to restrain a person from entering the securities market, pending investigation, provided, there is a prima facie evidence to suggest that such person has violated any of the provisions of SEBI Act or the Rules/Regulations made thereunder. In the present case, the prima facie view taken by SEBI that before entering into trades on March 13, 2014, the appellant was privy to UPSI that L&T has fixed the floor price for selling the shares of LTFH at ₹ 70/- per share is based on mere presumption and without any sustainable basis. In these circumstances, continuation of the restraint order is unjustified. However, since the restraint order passed against the appellant has already operated for nearly a year and since SEBI claims that the investigation is at a crucial stage, in the facts of present case, pending further investigation it would be just and proper to pass the following interim order - complete the investigation within a period of two months from today - SEBI deems it fit to proceed further in the matter, then SEBI shall issue show cause notice and pass appropriate order thereon after giving an opportunity of hearing to the appellant, within a period of one month from the date of issuing show cause notice - If SEBI fails to issue show cause notice to the appellant within two months from today and if issued, fails to pass an order as stated above within a period of one month from the date of issuing show cause notice, then and in that event the impugned confirmatory order dated October 16, 2014 continuing the restraint order passed under the exparte ad-interim order dated June 05, 2014 shall come to an end and the appellant would be entitled to access the Indian Securities Market.
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