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SEBI to move HC against tribunal order on Sterlite

Our Bureau

MUMBAI, Oct. 29

THE Securities and Exchange Board of India (SEBI) has decided to file an appeal in the High Court against the Securities Appellate Tribunal (SAT) order overruling an earlier SEBI order on Sterlite Industries Ltd (SIL).

SAT last week had quashed the SEBI order prohibiting SIL from accessing the capital market for two years for alleged stock-price manipulation of the company's scrip in 1998. In similar cases, SEBI in April this year had decided to debar Videocon Internat ional and BPL Ltd for accessing the capital market for varied periods. In addition, the SEBI order was for prosecuting directors of these companies.

SEBI officials said that enough facts are there to link the company (SIL) for manipulating its share price along with Harshad Mehta. In addition, the circumstantial evidence in the case also indicate towards price manipulation by the company, they said.

It is expected that the market regulator may move court either this week or next.

SAT had set aside the SEBI order as the market regulator did not have adequate evidence to establish that SIL had directly indulged in market manipulation.

The order by SAT had said ``in the absence of sufficient material evidence to establish that the appellant (SIL) had directly or indirectly indulged in market manipulation, the impugned order holding SIL guilty of violating SEBI regulations cannot sustai n.''

However, SEBI sources said that they had adequate evidence to show that SIL indulged in price manipulation of its scrip.

The decision to file an appeal by SEBI was taken after reading the SAT order and taking legal opinion.

With this, SIL's plan to buy back shares may be delayed as until the matter is resolved, no decision can be taken by the company on this matter.