TMI Blog2021 (10) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudication proceedings on merits and not on technical ground, and therefore the Prosecution for identical violation shall continue, if the order passed by Securities Appellate Tribunal is quashed and set aside by the Hon ble Supreme Court in Civil Appeal, preferred by the SEBI against the decision of Securities Appellate Tribunal, Mumbai. [ 2008 (10) TMI 628 - SECURITIES APPELLATE TRIBUNAL MUMBAI ] Thus, for the reasons stated above, the proceedings in the complaint pending on the file of Additional Chief Metropolitan Magistrate, 9th Court, Bandra, Mumbai, against the Applicants, shall remain stayed till the decision of the Hon ble Apex Court in the Civil Appeal s instituted by the SEBI against the decision of the Securities Appellate Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was passed by the Board on 24th October, 2005. It was confirmed on 24th July, 2006 and was in force till the final order was passed on 28th February, 2008. Aggrieved by the order dated 28th February, 2008, Company filed the appeal under Section 15T of the Securities and Exchange Board of India Act, 1992 passed by the whole time member, SEBI by which the Applicant-Company was restrained from accessing the capital market in any manner whatsoever for a period of one year for violation of regulations 3(a)(b)(c) and (d) and 4(1), 4(2)(k) and 4(2)(r) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations 2003 (FUTP Regulations for short). The appeal was hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m SEBI Special Case No.177/2015, on the ground that the Securities Appellate Tribunal, Mumbai in its decision dated 15th October, 2018 having held that charge of manipulative trading by the Company in its own shares by the Applicant had failed in absence of any link being established by the Respondent- Board between any of the traders and the Company, Prosecution cannot sustained and the continuation of the proceeding would an abuse of process of Court. Thus, urged that, since Applicants have been exonerated on merits in the adjudication proceedings and findings are binding on the Complainant, the allegations that Accused-Applicant violated the Regulations FUTP and 3(i)(ii) of SEBI (Prohibition of Insider Trading) Regulations, 1992 and offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t; Adjudication proceedings and criminal Prosecution can be launched simultaneously and the finding in the adjudication proceedings in favour of the person facing trial for identical violation will depend upon the nature of finding. If the exoneration in adjudication proceedings is on technical ground and not on merit, Prosecution may continue and in case of exoneration, is on merits where the allegation is found to be not sustainable at all and the person held innocent, criminal Prosecution on the same set of facts and circumstances cannot be allowed to continue. 10. In case in hand, the Applicants have been exonerated in the adjudication proceedings on merits and not on technical ground, and therefore the Prosecution for ident ..... X X X X Extracts X X X X X X X X Extracts X X X X
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