Tribunal sets aside SEBI order on Sundaram Finance

MUMBAI FEB. 4. The Securities Appellate Tribunal has set aside the Securities and Exchange Board of India's order imposing a fine of Rs. 100000 on Sundaram Finance and Wheels India, promoters of Axles India, for failing to file a report with the regulator under the takeover code norms while subscribing to the AIL rights issue. "There is nothing in the SEBI's order to show that the appellant acted deliberately, in defiance of law ... or acted in conscious disregard of its obligation,'' the SAT said in an order. On the contrary, the evidence on record shows that the companies acted bonafide and therefore, imposition of penalty was unwarranted, the SAT said. AIL had floated a rights issue of 61.200000 shares at par which opened on January 29, 2001 and closed on February 27, 2002, the SAT said. Though acquisition of shares was exempted from complying with the SEBI's takeover code norms, they failed to file a report with SEBI within the 21 days time limit prescribed in the regulation. The report was filed only on November 22, 2001. Following an enquiry, SEBI imposed a fine of Rs. 100000 as monetary penalty on the appellants through an order that was challenged in the Tribunal. — PTI