The Securities Appellate Tribunal has admitted a plea filed by software firm Zenith Infotech Ltd (ZIL) against market regulator the Securities and Exchange Board of India.
The case relates to a SEBI order against the Mumbai-based company wherein the stock market watchdog has asked the promoters to furnish bank guarantee of $33 million and also barred them from dealing with securities market.
While adjourning the case till May 7, SAT’s presiding officer P.K. Malhotra ordered the market regulator to file a reply within two weeks on the plea. It also granted relief to the company by asking them not to furnish bank guarantee till the next date of hearing.
Meanwhile, some offshore lenders also have been made party to the case and ordered to file their submission before the tribunal.
SEBI, in March this year, had barred promoters of ZIL from the securities market for allegedly stripping company assets for personal gains.