Samir Arora cleared of all charges

MUMBAI, OCT. 15. The Securities Appellate Tribunal (SAT) today exonerated Samir Arora, former Fund Manager of Alliance Capital Asset Management (India) Limited (ACAML), of all charges of conflict of interest, market manipulation and insider trading. The tribunal also dismissed the plea of the Securities and Exchange Board of India (SEBI) for granting a six-week stay on today's order. Setting aside the indictment of Mr. Arora by SEBI, the Presiding Officer of SAT, Justice Kumar Rajaratnam, pronounced, "It is sad that the appellant (Mr. Arora) has already suffered needlessly for more than one year without there being any worthwhile evidence against him." The SEBI in an order on August 9, 2003 prohibited Mr. Arora from buying, selling or deal in securities for five years, as the capital market regulator found him guilty on three counts, relating to conflict of interest, market manipulation and insider trading. "It was argued before us on behalf of the respondent (SEBI) that it is difficult to gather adequate evidence in respect of charges relating to conflict of interest, market manipulation and insider trading. While we appreciate the difficulty, it is not possible for us to let mere suspicions, conjectures and hypothesis take the place of evidence as described in the Indian Evidence Act. It is unfortunate that the appellant has had to answer for almost each and every professional decision taken by him during the last few years. These are presumably the professional hazards for those entrusted with the management of investors' funds. But he comes out well at the end of this all,'' Mr. Justice Rajaratnam noted in his order.