2011 (3) TMI 1844 - HC - SEBI

Calcutta HC: SEBI (DIP) Guidelines Time Limit in Clause 8.3.5.3 is Flexible, Not Mandatory for Listing Process.

The HC of Calcutta ruled that the time limit in clause 8.3.5.3 of the SEBI (DIP) Guidelines, 2000, is 'directory and not mandatory,' allowing for ... - The High Court of Calcutta, presided over by HON'BLE I.P. MUKERJI, J., addressed an application concerning the listing of Elite Leasings Limited with the Calcutta Stock Exchange Association Limited. The central issue was clause 8.3.5.3 of the SEBI (DIP) Guidelines, 2000, which mandates that steps for listing shares with SEBI must be taken within thirty days of the scheme's sanction. The applicant's scheme was sanctioned on January 17, 2000, but the Calcutta Stock Exchange only made a recommendation to SEBI on June 13, 2007.SEBI treated the application as closed due to the delay, while the Calcutta Stock Exchange argued that the applicant was responsible for the delay. The applicant denied this. The court did not resolve these factual disputes but interpreted the guideline's time limit as 'directory and not mandatory,' meaning that a delay should not permanently bar listing.The court directed the applicant to submit a fresh application within two weeks, to be processed by the Calcutta Stock Exchange and forwarded to SEBI within an additional two weeks. SEBI is to process the application within four weeks of receipt, ensuring that the delay does not prevent the granting of the application. The application was disposed of with these instructions.