TaxTMI 
TaxTMI 
2012 (2) TMI 744
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....1 of the Whole Time Member of Securities & Exchange Board of India ["SEBI" for short], rejecting the petitioner's preliminary objection in the enquiry pursuant to the SEBI show-cause notice dated 14th February 2009 and supplementary show-cause notice dated 19th February 2010 under sections 11, 11(4) and 11B of the SEBI Act, 1992 and Regulation 11 of the SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to Security Market), Regulations 2003 in the matter of Satyam Computer Services Ltd ["SCSL" for short]. 2. The petitioner is facing prosecution for certain offences alleged to have been committed by the petitioner in what is popularly known as "Satyam Scam". SEBI issued show cause notices calling upon the petitioner to show....
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....isted companies, compliance of obligations of listed companies and intermediaries registered with SEBI and the requirements under securities laws (the SEBI Act, 1992, the SCRA 1956, the Depositories Act, 1996, those provisions of the Companies Act, 1956, which are administered by SEBI under section 55A thereof, the Rules, Regulations, Guidelines made under these Acts, which are administered by SEBI and the Listing Agreement) permanently or for a specified period; (b) Issuing appropriate directions to listed companies and intermediaries registered with SEBI not to engage the petitioner's services for issuing any certificate with respect to compliance of statutory obligations which SEBI is competent to administer and enforce under va....
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....ts on merits of the case on the given date and time, the SEBI proceedings shall be conducted ex-parte, on the basis of the material available on records." 6. Mr. DeVitre, learned Senior Counsel for the petitioner submitted that in view of the catena of decisions of the Supreme Court including in M. Paul Antony vs. Bharat Gold Mines Ltd., (1993) 3 SCC 679, during the pendency of the criminal proceedings, the disciplinary proceedings by the bodies like, SEBI should be kept in abeyance, as the right available to the petitioner under Article 20(3) of the Constitution of India will be violated and the defence of the petitioner in the criminal proceedings would be prejudiced, if he is required to make any submission in the matter on the show c....
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....itioner had challenged such proceedings before the Delhi High Court on the same grounds which are now being raised for challenging the SEBI proceedings. The Delhi High Court dismissed the said writ petition as well as the Letters Patent Appeal and in Special Leave Petition (Civil) No. 20915 of 2011, the Supreme Court has passed the following order on 1st August 2011:- "Learned counsel for parties are agreed that this petition can be disposed of by directing the respondent - Institute to commence the disciplinary proceedings from the week commencing 3rd October, 2011. We order accordingly. We may, however, add that if by that date trial in criminal cases No. CC 1/10, CC 2/10 and CC 3/10, in progress in the Court of XXI ACMM, Hyderab....
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....show cause notices dated 14th February 2009 and 19th February 2010, the petitioner shall not :- (a) directly or indirectly, in any manner, issue any certificate with respect to compliance of obligations of listed companies and intermediaries registered with SEBI and requirements of those made under securities laws {Securities & Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996 and the provisions of the Companies Act, 1956, which are administered by SEBI under section 55A thereof, the Rules, Regulations, Guidelines made under these Acts (which are administered by SEBI and the Listing Agreement}; (b) access the securities market and he is prohibited from buying, se....