Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securities and Exchange Board of India Act 1992 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Securities and Exchange Board of India Act, 1992: ss. 2(2), 11(1), 11(2), 11(4), 118, 12A-Power of SEBl to probe GDRs sold by Indian Companies backed by local shares to foreign investors and listed on overseas exchange - Respondents lead managers dealt with the Global Depository Receipts (GDRs) issued by six companies - Allegation that GDRs fictitiously created at global level by respondent to give false. appearance to the financial statement of the companies in order to mislead Indian investors - SEBI debarring the respondents for a period of 10 years prohibiting respondents from accessing the capital market- Challenge against- Held: In the case on hand, the allegations levelled against the issuing company in connivance with the respondents are that a make believe affair was created, as though there was genuine creation of GDRs and its investments by the foreign investors on the very date when the GDRs were issued and thereby the global performance of the issuing company in the local market of the issuing company had a boost in the commercial sector, which lured the local investors to develop their keen interest to make the investments on a higher share value by virtue of the investment made by the foreign investors - The said fact would certainly call for a probe at the hands of SEBI on whom a duty is cast u/s. 11 (1) to protect the interest of investors in securities and the security market - Therefore, exercise of jurisdiction by SEBI against the respondents was well founded A - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 - Regns 2(1)(c), 5 - Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 - Securities Contracts (Regulation) Act, 1956 - ss.2(h), 2(j) . s.118 - Exercise of jurisdiction under. - Scope of - Discussed. Global Depository Receipts (GDRs) - What is GDRs and how it is issued- Manner in which GDR is dealt with and how the rights in favour of the holder of GDR is created after its transfer in his favour - Discussed. Role of Lead Manager at the time of creation and disposal of GDRs - Discussed. s. 2(h)(i) - Securities - Meaning of - Discussed. |
Judge | Hon'ble Mr. Justice Fakkir Mohamed Ibrahim Kalifulla |
Neutral Citation | 2015 INSC 483 |
Petitioner | Securities And Exchange Board Of India |
Respondent | Panasia Advisors Ltd. & Anr. |
SCR | [2015] 11 S.C.R. 90 |
Judgement Date | 2015-07-06 |
Case Number | 10560 |
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