The Securities Appellate Tribunal (SAT) on Tuesday granted Sebi time till March 10 to pass the final order in the matter related to CG Power and Industrial Solutions where former chairman Gautam Thapar and other entities were barred from the securities market. While giving more time, the tribunal also clarified that the regulator can rely only upon documents that are also made available to all the entities for passing the confirmatory order.
Apart from Thapar, Avantha Holdings Ltd as well as CG Power's former chief financial officer V R Venkatesh and two former directors -- Madhav Acharya and B Hariharan -- were barred from the securities market.
In an interim order passed in September 2019, Sebi barred these entities for alleged misstatement of the company's accounts and diversion of funds.
The entities had moved the tribunal against Sebi's order.
The tribunal, in its order passed in October 2019, upheld the order and directed Sebi to pass a confirmatory order within four weeks from the date of conclusion of hearings.
Sebi concluded the hearings on January 15.
Against this backdrop, the regulator sought an extension of time for passing the final order.
Allowing the application, the tribunal directed Sebi to pass the confirmatory order on or before March 10, 2020.
"We have been informed that the hearing stood concluded on January 15, 2020. Four weeks have elapsed and the confirmatory order has not been passed as yet and, consequently, the present application has been filed," the tribunal said on Tuesday.
Earlier, the tribunal had also ruled that the entities are entitled for supply of documents from the company so that they may file an appropriate reply before Sebi.
Denial of such documents by the company or by Sebi would be in violation of principles of natural justice as embodied in Article 14 of the Constitution.
Article 14 pertains to equality before law.
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