SAT sets aside Sebi fine on Cairn India in buyback case
SAT) has set aside the Securities and Exchange Board of India's order against Cairn India, now part of Vedanta Ltd, over alleged violation of buyback rules.
The tribunal set aside a fine of ₹5.25 crore imposed on Cairn India for allegedly making a misleading public announcement of the buyback of shares on January 14, 2014.
«The company could not have foreseen or predicted that the stock markets would witness this bullish trend at the time when the decision for going for a buyback was taken nor could the company be aware at the time of making the public announcement that the traded price of the scrip would be above the maximum buyback price on 68 days out of 123 trading days,» SAT said in its order on Thursday.
It also set aside a penalty of ₹15 lakh each Sebi had imposed on P Elango, then CEO and a director of Cairn, and two other directors: Aman Mehta and Neerja Sharma.
