The Securities Appellate Tribunal has disallowed the early ruling of the capital market regulator that the Reliance Industries (NSE 1.88%) did not contravene the agreements listed during the possession of the Network 18 Media & Investments by Independent Media Trust.
Securities and Exchange Board of India, is a tribunal, a quasi-judicial body that looks into the entities vexed by the board. It announced that the Reliance Industries LTD took an indirect charge over the Network 18 Media & Investments making use of the IMT (Independent Media Trust) and assisted the regulator in order to have a close look at the SAT, making it a picky decision of the SEBI.
Victor Fernandes and Sangeeta Fernandes have filed a case before the SEBI imputing that the conglomerate company was unable to disclose its indirect control over the Network 18 Media & Investments Company (NW18) and TV18 Broadcast Ltd (TV18) via Independent Media Trust (IMT).
“In our opinion, clause 36 of the listing agreement mandates that when a listed company acquires indirect control over another listed company either through a Trust or through any other entity, then, such acquisition has to be disclosed to the stock exchanges,” SAT said. ” In the ordinary course, we would have set aside the impugned decision which is not only erroneous and detrimental to the interests of investors in the securities market but also in effect defeats the object with which the disclo .. – said the order.
SAT has questioned the Sebi to revise the problem independently without being affected by the prima facie. “If Sebi,is not agreeable to the view taken by the Competition Commission of India on 28/5/2012 that by subscribing to the ZOCDs under the ZOCD Agreement dated 27/2/2012, IMT acquired indirect control over NW18, then, Sebi shall record its reasons for taking a contrary view,” – said SAT.