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2019 (4) TMI 1090 - HC - SEBICompounding in proceedings - consent of respondent to permit compounding - Compounding at the initial stage or at the final stage - Whether object of the SEBI Act would be lost if compounding is permitted by this Court, as the allegations levelled against petitioner are of artificially jerking the price of the share of petitioner’s company? - HELD THAT:- No doubt, that petitioner had filed an application for compounding way back in the year 2013 and it remained pending, but now, the proceedings before the trial court have reached the stage of final arguments. Compounding at the initial stage has to be encouraged, but not at the final stage. The object of the SEBI Act has to be kept in mind. A stable and orderly functioning of the securities market has to be ensured. It will not be in the interest of justice to discharge the accused at the final stage of the proceedings by allowing the application for compounding without the consent of SEBI Act as it will defeat the objective of the SEBI Act. Though the Adjudicating Officer has found that the alleged violation committed by petitioner has not resulted in any loss to the investors, but this by itself would not justify discharge of accused at the fag end of trial. As relying on N.H. SECURITIES LTD., NAVINDCHANDRA PAREKH AND KIRTIKUMAR PAREKH [2018 (12) TMI 99 - BOMBAY HIGH COURT] and M/S. METERS AND INSTRUMENTS PRIVATE LIMITED [2017 (10) TMI 218 - SUPREME COURT OF INDIA] no justification to allow petitioner’s application under Section 24A of the SEBI Act, 1992.
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