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2020 (1) TMI 1201 - HC - SEBIInsider trading in the scrips of NDTV - principal allegation in the impugned notice is that the petitioners, being promoters, and qualifying as insiders, traded in the shares of NDTV while in possession of UPSI - calling upon the petitioners before us to show cause as to why directions under section 11B of the Securities and Exchange Board of India Act, 1992 including direction for the disgorgement of illegal gains be not issued against the petitioners for the aforementioned alleged violations of the SEBI Act, 1992 and PIT Regulations - HELD THAT:- We should allow the petition to be prosecuted as its obvious purpose is to delay the adjudication of the show-cause notice. It is not as if the petitioners cannot appear before SEBI without prejudice to their rights and contentions and complaint that they were not provided full, free and unhindered inspection of the relevant records and documents. The petitioners can participate in the hearing or adjudication of the show-cause notice without prejudice to all their rights and contentions including on the above point. They can very well substantiate their primary contention that on the face of it, the show-cause notice is time barred. We do not think that we should interfere with the showcause notice as that relief could have been claimed but advisedly not claimed earlier. It may be that the Writ Petition filed before the Hon’ble High Court of Delhi is filed by another entity and not the petitioner. Secondly, when that High Court passed the order, the present petitioners were not served with the show-cause notice. However, even that High Court expressed its reluctance to interfere with the investigations by SEBI. Pertinently, Ms.Sethna does not seek the relief of quashing of the show-cause notice. We fail to understand the reluctance of the petitioner to appear before SEBI reserving its rights and contentions. Writ Petition before this Court with virtually the same complaint should not be entertained as that would mean that this Court can be approached challenging such a show-cause notice, when the petitioners were aware that they first approached through their promoter group, the High Court of Delhi. The grievance being more or less the same, we do not think that this Petition should be entertained only on the ground of alleged lack of inspection. We do not think that the petitioners cannot properly defend themselves. The petitioners can participate in the adjudication or the hearing and in the event any adverse order is passed, while challenging the same, the petitioners can highlight all the grievances and grounds projected in the petition before the High Court of Delhi and this High Court.
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