look news india
The Bombay High Court has imposed a fine of Rs 80 lakh on the Securities and Exchange Board of India (SEBI), National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for illegally freezing the demat accounts of a Mumbai resident and his non-resident son.
The court in its order directed that SEBI, NSE, BSE pay Rs 50 lakh to the son and Rs 30 lakh to the father within two weeks. In this case, the complainant was wrongly shown as a promoter. It is rare that a market regulator is penalized by a court or tribunal.
The court in its order directed that SEBI, NSE, BSE pay Rs 50 lakh to the son and Rs 30 lakh to the father within two weeks. The complaint is related to SEBI's 2017 order. After SEBI's order, the demat accounts of Pradeep Mehta and his son Neel Mehta were frozen. Actually, this order of SEBI was against Srinuj & Co. Who were accused of violating SEBI rules. Neel's father-in-law was the main promoter in this company. The father-son filed a petition in the Bombay High Court against this mistake of SEBI. He said in the petition that he has no management in Srinuj & Co or he is not a part of the management of the company. As soon as the matter went to the court, the High Court said in its order that SEBI's order was illegal and unfair and allowed Mehta father and son to manage the stock in their demat accounts.
