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Issues involved:
The issues involved in this judgment are the appeal against the order passed by the Securities and Exchange Board of India (SEBI) regarding alleged fraud by a company in issuing preferential warrants and underlying shares, and the maintainability of the appeal under Section 15T of the Securities and Exchange Board of India Act, 1992. Issue 1 - Alleged Fraud by the Company: The appellant alleged that the company, along with its promoters and directors, committed fraud by issuing preferential warrants and underlying shares, contravening regulatory provisions. SEBI informed the appellant that no violation of regulations had occurred. The appellant appealed to the Securities Appellate Tribunal, which disposed of the appeal, prompting the appellant to file the present appeal against SEBI's detailed order. Issue 2 - Maintainability of the Appeal: The appellant, holding a significant share in the company, argued that SEBI's order adversely affected its rights, making it appealable. SEBI and other respondents contended that the order did not directly impact the appellant's rights and was not appealable under Section 15T of the Act. The Tribunal analyzed the definition of "an order" and previous decisions, ultimately upholding the respondents' objection and dismissing the appeal without delving into the case's merits. In conclusion, the Tribunal found that the impugned order from SEBI did not adversely affect the appellant's rights, making it not appealable under Section 15T of the Act. The appellant had alternative avenues to address its grievances, such as pursuing the matter before the Company Law Board and the Delhi High Court. Therefore, the appeal was dismissed, and no costs were awarded.
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