SAT stays order against Edelweiss broking, temporary relief for DHFL

Topics SAT | Edelweiss | Sebi

DHFL has obtained temporary relief with the SAT
The Securities Appellate Tribunal (SAT) has stayed an order passed by the National Stock Exchange (NSE) against Edelweiss Broking and has directed both parties to submit their replies. In 2017, NSE had imposed a penalty of Rs 1.8 crore on Edelweiss for non-adherence to leverage and exposure limits while granting margin trading facility. 

“We stay the effect and operation of the impugned order provided the appellant deposits 50 per cent of the amount of the penalty within three weeks which shall be kept in an interest bearing escrow account and would be subject to the result of the appeal,” the tribunal said in an order.

DHFL gets temporary relief from SAT

Dewan Housing Finance (DHFL) has obtained temporary relief with the Securities Appellate Tribunal (SAT) directing market regulator Securities and Exchange Board of India (Sebi) to halt recovery proceedings. 

“The question which arises for consideration is, whether the Sebi could initiate proceedings under SEBI Act, 1992 inspite of issuance of a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC). This aspect requires consideration,” said SAT directing Sebi to submit a reply on this issue within four weeks.

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