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Bombay High Court pulls up SEBI for non-compliance with court order in complaint against Vineet Jain firm

However, the High Court did not agree with this contention since the petitioners were also seeking orders to SEBI to ensure full and true disclosure of all information about BNL.

The Court concluded that the petitioners would not be disentitled to have information about the affairs of BNL notwithstanding the revocation of the settlement agreement.

The bench added that while the company could overlook court order for business interest, SEBI could not and hence was bound to comply with the High Court order.

“Respondent Nos.2 to 9 in their business interest may overlook the solemnity of the orders passed by this Court, however, SEBI in its public character cannot take the same approach. In these circumstances, the order dated October 23 cannot be rendered nugatory. The SEBI is required to holistically consider such orders and not merely in the context of the settlement proceedings, as such order considers the substantive rights of the petitioners, who are shareholders of BNL, having equal rights to that of respondent nos. 3 to 9. SEBI cannot have different yardstick between shareholders,” the 26 page order read. 

The Court thus ruled that its order of October 23 has to be complied with by SEBI.

Source: Barandbench

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