Description

Securities Appellate Tribunal grants partial stay on debarment order against Ashok Kumar Joshi, requiring 50% penalty deposit while staying 18-month debarment pending appeal in Golden Tobacco Limited case.

Summary

The Securities Appellate Tribunal (SAT) has issued an order dated October 8, 2025, in Appeal No. 441 of 2025 filed by Ashok Kumar Joshi against SEBI’s penalty and debarment order related to Golden Tobacco Limited. The tribunal granted partial interim relief by staying the 18-month debarment order while requiring the appellant to deposit 50% of the Rs. 10 lakh penalty amount within four weeks. The stay was granted considering the significant delay between the appellant’s resignation in 2019 and the show cause notice issued in 2023, despite the investigation period spanning 2009-2021.

Key Points

  • SAT admitted Appeal No. 441 of 2025 filed by Ashok Kumar Joshi against SEBI
  • Original SEBI order imposed Rs. 10 lakh penalty and 18-month debarment
  • SAT granted stay on the 18-month debarment order pending appeal
  • Appellant required to deposit 50% (Rs. 5 lakh) of penalty within 4 weeks from October 8, 2025
  • Penalty amount to be kept in interest-bearing account by SEBI
  • Investigation period covered 2009-2010 to 2020-2021
  • Appellant resigned from position on September 27, 2019
  • Show cause notice issued on September 20, 2023 (approximately 5 years after resignation)
  • SEBI has 6 weeks to file reply, appellant gets 3 weeks thereafter for rejoinder
  • Matter relates to Golden Tobacco Limited and co-noticee Anurag Dalmia

Regulatory Changes

No new regulatory changes introduced. This circular communicates a judicial order from the Securities Appellate Tribunal regarding enforcement proceedings.

Compliance Requirements

For Ashok Kumar Joshi (Appellant):

  • Deposit 50% of penalty amount (Rs. 5 lakh) within 4 weeks from October 8, 2025 (by November 5, 2025)
  • File rejoinder within 3 weeks after SEBI files its reply

For SEBI:

  • File reply to the appeal within 6 weeks from October 8, 2025
  • Maintain penalty deposit in interest-bearing account
  • Continue to hold debarment order in abeyance subject to penalty deposit compliance

For Market Participants:

  • Note the stay on debarment - subject to deposit compliance, the 18-month debarment is not operative during appeal proceedings

Important Dates

  • October 8, 2025: SAT order date
  • November 5, 2025: Deadline for 50% penalty deposit (4 weeks from order)
  • November 19, 2025: SEBI’s deadline to file reply (6 weeks from order)
  • December 10, 2025: Appellant’s deadline to file rejoinder (3 weeks after SEBI’s reply deadline)
  • January 9, 2026: Next hearing date (by consent)
  • September 27, 2019: Date of appellant’s resignation (historical reference)
  • September 20, 2023: Date of show cause notice issuance (historical reference)
  • 2009-2021: Investigation period (historical reference)

Impact Assessment

Legal/Procedural Impact: The SAT order demonstrates the tribunal’s willingness to grant interim relief in cases involving significant procedural delays. The 5-year gap between resignation and show cause notice issuance was a key factor in granting the stay on debarment, suggesting appellate tribunals will consider timing issues in enforcement matters.

Market Impact: Limited direct market impact as the matter pertains to specific individuals and historical events (2009-2021 investigation period). Golden Tobacco Limited stakeholders should note the ongoing proceedings.

Compliance Impact: The order illustrates that while SAT may grant relief on debarment orders, financial penalties still require partial payment pending appeal. Market participants facing similar enforcement actions should note that interim relief is conditional and case-specific.

Precedential Value: The order may be relevant for other cases involving:

  • Delays between resignation and enforcement action
  • Balancing interim relief with partial penalty deposits
  • Legacy investigations spanning multiple years

Stakeholder Impact:

  • Ashok Kumar Joshi: Obtains temporary relief from debarment but must pay Rs. 5 lakh pending appeal
  • SEBI: Enforcement action partially stayed but retains 50% penalty deposit with interest
  • Golden Tobacco Limited: Ongoing proceedings may affect company reputation and governance assessments

Impact Justification

SAT order provides interim relief in enforcement matter affecting specific individuals, with limited broader market impact but significant for the parties involved and demonstrates appellate tribunal's approach to legacy cases with procedural delays.