SAT to hear JCL appeal today

The Securities Appellate Tribunal (SAT) is further expected to hear the appeal filed by Jermyn Capital LLC (JCL) on Tuesday after it adjourned the matter on Monday. The matter was adjourned by the Tribunal after counsels of both the parties involved in the case — JCL and Securities and Exchange Board of India (Sebi) — agreed to go back to their respective clients and seek their approval on the offer put forward by the bench. JCL, a sub account of Taib Capital, a registered foreign institutional investor (FII) was asked by Sebi in the first week of December last year to restrain from buying or selling securities in any manner after the Indian regulator found that JCL had some links with Ketan Parekh, one of the main accused of securities market scam of 2001. JCL moved SAT and prayed that the ban be lifted as it has been imposed without them being heard and without following the principles of natural justice. SAT while dealing with the application, asked Sebi to complete its investigation in this regard before January 13, 2006 and instructed the regulator to pass an order in this regard. Sebi followed the SAT instructions, issued show-cause to JCL, conducted the hearing and issued an interim order on January 13 as directed by the SAT in its earlier hearings. As an interim relief SAT allowed JCL to sell the securities from its portfolio with the condition that it will not be allowed to repatriate the amount so received by selling the securities.