The Securities Appellate Tribunal (SAT) has found loopholes in yet another Sebi order. SAT has reduced the penalty imposed on Rameshchandra Mansukhani, Chairman and Promoter of Man Industries Ltd, from Rs 4.36 crore to just Rs 1 lakh, as Sebi awarded the penalty based on the law prevailing at the time of issuing the order.The continous failure of Sebi to defend its judgements in the appellate tribunal is making a mockery of its orders. Picking holes in the Sebi order, SAT said, ‘‘There appears to be no application of mind that at the relevant time the maximum penalty was Rs 5 lakh and therefore, the penalty of Rs 4.36 crore was not permissible under law.’’The law existed at the time of commission of the offence has to be applied and not the law as existing on the date of the order, it said.
