2025 (11) TMI 1353 - AT - SEBI

Independent directors allowed to negotiate with investors while SEBI market access debarment largely remains, affidavit condition imposed

AT considered the appellant's request to allow independent directors to negotiate with investors and to stay the debarment from accessing the securities ... Debarred from accessing the securities market - Appellant seek that the independent Directors of the Company may be permitted to negotiate with them and also the ban imposed on accessing the securities market may be stayed - HELD THAT:- SEBI submits that if the independent Directors are to negotiate with bonafide investors this Tribunal may consider granting an order subject to appellant filing an affidavit disclosing the facts with liberty to raise further contentions by the SEBI. Thus, the independent Directors may negotiate with the proposed investors and place the material on record for further consideration. The Company (Noticee No. 1) has been debarred from accessing the securities market for a period of '5 years'. The appellant sought a stay of the ban and permission for the independent directors to negotiate with prospective investors. SEBI accepted conditional relief, proposing that such negotiations be allowed 'subject to appellant filing an affidavit disclosing the facts with liberty to raise further contentions by the SEBI.' The Tribunal granted that the independent directors 'may negotiate with the proposed investors and place the material on record for further consideration.' Matter listed for further hearing on August 08, 2025.