The Hindu : Business : SAT query in GTB case

Online edition of India's National Newspaper
Wednesday, Nov 23, 2005

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SAT query in GTB case

Special Correspondent

Matter has been adjourned to Nov. 30

MUMBAI: The Securities Appellate Tribunal (SAT) on Tuesday expressed its displeasure over the `soft' order passed by the Securities and Exchange Board of India (SEBI) against Ramesh Gelli, promoter of Global Trust Bank (GTB), for violating Prohibition of Fraudulent and Unfair Trade Practices (FUTP) Regulation.

Opinion sought

The Presiding Officer of SAT Justice Kumar Rajaratnam sought the opinion of the SEBI counsel on the possibilities of referring the case to the Central Bureau of Investigation (CBI).

When the appeal of Mr. Gelli came up for hearing, Mr. Justice Rajaratnam expressed his displeasure over the "soft order passed against Mr. Gelli and other promoters of GTB for serious violations of FUTP Regulation." SEBI asked them not to deal in their own securities of GTB for a period of 18 months, while in other cases of lesser magnitude, the entities were barred by SEBI from dealing in the securities market for a much longer period under Sec. 11B of the SEBI Act.

The court orally asked the senior counsel for SEBI whether the tribunal has power to refer the case to the CBI for investigation against the promoters into alleged fraud committed on the investors.

The counsel for SEBI sought a short adjournment. The matter has been adjourned to November 30.

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