SAT sets aside penalty imposed by SEBI on Apollo Tyres Ltd.
The Securities Appellate Tribunal has set aside the over ₹1 crore penalty imposed by SEBI on Apollo Tyres with respect to buyback of shares and has directed the regulator to pass a fresh order.
The tribunal’s ruling comes after taking into consideration the appeal filed by Apollo Tyres as well as miscellaneous application submitted by eight family members of late Harshad Mehta, who was involved in a big stock market scam. The application sought permission to intervene in the appeal. A total of ₹1.03 crore fine was slapped on Apollo Tyres in July 2014 by SEBI for violating norms pertaining to buyback of shares.
While restoring the matter back to SEBI’s Adjudicating Officer (AO) for a fresh order, the tribunal said imposing of ₹1 crore without mentioning the particular violation is “not justified”. It was alleged that shares of Apollo Tyres were bought back by the company and its promoters in contravention of the relevant section of the Companies Act and SEBI regulations.