The Securities Appellate Tribunal (SAT) has granted relief to by staying on an order issued by markets regulator Sebi, which directed the lender to transfer over Rs 160 crore in the matter pertaining to BRH Wealth Kreators’ share pledging.


“We find that the appellant is one of the largest private sector bank and as per balance sheet, it has assets worth Rs 1,654,228 crore and, therefore, has sufficient financial strength and ability to furnish the amount as per the impugned order. It is not a case where the bank will run away or will become insolvent. We accordingly stay the effect and operation of the impugned order till further orders…” the SAT said.



The tribunal directed to give an undertaking to that it will abide by the result of the appeal and the directions given therein within four weeks from the date of the disposal of the appeal.


ALSO READ: Improved earnings visibility, debt pruning boost shares of Varun Beverages



Last month, imposed a penalty of Rs 1 crore on for invoking securities pledged by BRH Wealth, allegedly in violation of an interim order. Further, the bank was also directed to transfer Rs 158 crore, along with an interest of 7 per cent per annum from October 14,2019.


HDFC Bank had given a loan to BRH Wealth against shares. The broker had given a declaration that it was the absolute owner of the securities and they were not that of its clients.


However, BRH had indulged in several irregularities, which led to an interim order against it in October 2019. In March 2020, issued a show cause notice to HDFC Bank after it invoked shares pledged by BRH.


The SAT observed the interim order noted that certain securities were pledged by BRH to HDFC Bank, but didn’t restrain the lender from encashing the pledged securities. The tribunal said whether the securities have been rightly invoked by HDFC Bank will require further consideration. It directed Sebi to file its reply in three weeks and posted the matter to April 7 for final disposal.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor




Source link