Shankar Sharma case: SAT extends interim stay till Dec 11

CNBC-TV18 learns that Shankar Sharma has moved the Securities Appellate Tribunal (SAT) requesting an extension of the stay against SEBI's order of barring him from the securities market for a year. The stay of the SAT order was to expire on November 29 . The SAT has now extended the interim stay till December 11, reports CNBC-TV18's Ashwin Mohan.

Here is a verbatim transcript of his comments on CNBC-TV18. Also watch the accompanying video.

This is a sudden and significant development in the Shankar Sharma case. The Securities and Exchange Board of India (SEBI) had passed an order against Shankar Sharma alleging that Sharma had indulged in synchronised trading, which is essentially buying and selling scrips at almost the same time to create the impression of artificial volumes.

Sharma had approached the SAT and SAT had dismissed Shankar Sharma’s appeal. There was a stay on the SAT order till November 29. What has happened today is that Shankar Sharma’s legal team has approached the securities appellate tribunal and had submitted a review petition to SEBI.

Now what is the reason behind this review petition according to Sharkar Sharma’s legal council, some of the additional arguments have not been noticed in the SAT order, that is the feedback that they have received from the Supreme Court. Shankar Sharma was to approach the Supreme Court towards the end of this month.

So there are certain additional arguments which have not been noticed in the SAT order and hence these legal team has approached SAT asking for an extension of the stay. SAT has granted an extension to the stay. It was November 29 and now Shankar Sharma has 12 more days till December 11.

A review order is also on the cards by SAT. There are certain fresh arguments which will come up for hearing on December 11. So this is definitely an interesting development in the case. So, it is a relief for Shankar Sharma. He has 12 more days and the stay is extended.