9911796707
TMI Blog2007 (11) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... ed November 21, 2006 passed by the whole time member of the Securities and Exchange Board of India (for short the Board) directing the appellants in these cases to jointly and severally disgorge an amount of ₹ 115.82 crores in two sets within six months from the date of the order. Facts, in so far as they are necessary for the disposal of these appeals, are as under. As a part of the on going surveillance activity by the Securities and Exchange Board of India (for short the Board) into various aspects of working of securities market, it initiated a probe and advised the Bombay Stock Exchange and National Stock Exchange to look into the dealings in the shares allotted in various Initial Public Offerings (IPOs) before their listing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd by its order dated November 21, 2006 directed the appellants herein and Karvy Stock Broking Limited (which is the appellant in Appeal no. 6 of 2007 which is being dealt with separately) to disgorge an amount of ₹ 115.82 crores within a period of six months from the date of the order. The Board further directed that the amount shall be paid in equal amounts by the Depositories and the Participants in proportion to their actual involvement. Hence these appeals. In para 7 of the impugned order it has been observed that This order may be read as part of the SEBI interim order dated 27th April, 2006. In para 45 of the impugned order this is what the Board had to say : 45 :Therefore, as a remedial measure, to protect the intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decided. Strangely enough, even before determining the guilt, if any, of the appellants, the Board has directed them to disgorge a sum of ₹ 115.82 crores. In other words, the amount which the appellants have to disgorge has been determined in the impugned order though their guilt has yet to be established. It has also not been established whether they made any ill gotten gains. Having done this, the Board has observed that in case the appellants are found guilty of any wrong doing in the final order which has yet to be passed, they shall become liable to disgorge the amount without any further hearing being afforded to them and in case they are exonerated they shall be free from any liability under the impugned order. Not only that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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