Stampede Capital : Awarding orders/contract

BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI

Date of Hearing : 08.04.2022

Date of Decision : 11.08.2022

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Mr. Somasekhar Sunderasan, Advocate with Mr. Abhishek Venkatraman, Mr. Vishwajeet Deb, Ms. Sabeena Mahadik, Mr. Sagar Hate, Mr. Aayush Kothari, Ms. Sanjana Salvi, Advocates i/b Visesha Law Services for the Appellant.

Mr. Janak Dwarkadas, Senior Advocate with Mr. Ankit Lohia, Mr. Rashid Boatwalla, Ms. Priya Diwadkar, Ms. Samiksha Rajput, Advocates i/b MKA & Co. for the Respondent.

CORAM : Justice Tarun Agarwala, Presiding Officer Justice M. T. Joshi, Judicial Member Ms. Meera Swarup, Technical Member

Per : Justice M. T. Joshi, Judicial Member

1. Aggrieved by the decision of the respondent National Stock

Exchange Board of India Ltd. (hereinafter referred to as 'NSE')

dated March 8, 2021 disabling the trading terminals of the appellant

until further direction, Appeal No. 145 of 2021 is preferred. This

interim direction of the respondent suspending the appellant was

stayed by this Tribunal vide order dated March 9, 2021. It appears

that the respondent NSE thereafter conducted forensic audit of the

appellant and finally passed another impugned order dated July 14,

2021. Vide this impugned order, the appellant is expelled from the

membership of the exchange with a direction that the appellant shall

close out any open position in the exchange traded derivative

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contracts within a period of three months and settle the pay-in and pay-out obligations in respect of transactions which have taken place before the date of the impugned order. This order is challenged before us vide Appeal No. 494 0f 2021. This final order was also stayed by this tribunal vide order dated July 27, 2021. In all 3 show cause notices (SCN) were issued to the appellant.

2. The principal allegations against the appellant are as follows :-

First SCN

1. the appellant has made change in the promoter causing change in the control of the appellant without obtaining prior approval of the exchange.

Second SCN

1. Misuse of clients funds,
2. Non-reconciliationof securities,
3. Submission of incorrect data towards weekly monetary clients funds,