SAT reduces Sebi's penalty on Jindal Cotex to Rs 25 lakh in GDR case

The Securities Appellate Tribunal has slashed the penalty imposed by Sebi on Jindal Cotex Ltd (JCL) to Rs 25 lakh from Rs 10.3 crore in a case related to manipulation in the issuance of global depository receipts.

Also, the appellate tribunal reduced the fine on JCL's Managing Director Sandeep Jindal to Rs 10 lakh from Rs 20 lakh.

However, it affirmed the penalty imposed on Rajinder Jindal and Yash Paul Jindal who was Whole Time Director and Chairman of JCL, respectively, saying the fines were neither arbitrary nor excessive.

"In our opinion, the penalty imposed is "excessive" and disproportionate to the violation and is also discriminatory.

"The company is a running concern. Penalising the firm with such a heavy penalty is in fact penalising the shareholders, which is not justifiable especially for a running company," the appellate tribunal said in its order dated February 23.

The ruling came after JCL, Sandeep Jindal, Rajinder Jindal and Yash Paul Jindal challenged the order pa