Sebi to move SC against SAT order on Samir Arora

Capital market regulator Securities and Exchange Board of India (Sebi) has finally decided to challenge the order passed by the Securities Appellate Tribunal (SAT) exonerating Samir Arora, former chief investment officer (CIO) of Alliance Capital Mutual Fund (ACMF). Sebi is planning to file a full-fledged petition in the Supreme Court contesting the SAT order on a point of law, sources said. A senior Sebi official said, ‘‘After studying the SAT order in detail, we’ve come to the conclusion that it can be challenged on the point of law. Hence we’re planning to file a full-fledged petition in the court shortly’’. Sebi had charged Arora of insider trading and related charges and had debarred him from dealing in securities in any manner for a period of five years in April this year. Sebi, in its order on Arora, had earlier said, ‘‘Arora, the ACMF fund manager, was a key functionary and is guilty of misconduct and violation of law and primarily responsible for the commissions and omissions of the ACMF and its AMC. Therefore, action against him is required in order to protect the interest of investors and ensure safety, integrity and the orderly development of the securities market’’. In a landmark judgment, the three-member tribunal, headed by Justice Kumar Rajaratnam, said, ‘‘It is unfortunate that the appellant (Arora) 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. We have, therefore, no hesitation in exonerating him honourably of all the charges’’.