Description

Securities Appellate Tribunal grants partial stay on debarment order against Ashok Kumar Joshi in Golden Tobacco Limited case, requiring 50% penalty deposit within four weeks.

Summary

The Securities Appellate Tribunal (SAT) issued an interim order on October 8, 2025, in Appeal No. 441 of 2025 filed by Ashok Kumar Joshi against a SEBI order related to Golden Tobacco Limited. The Tribunal granted partial relief by staying the debarment order while requiring deposit of 50% of the Rs. 10 lakh penalty within four weeks. The matter pertains to investigations covering the period 2009-2021.

Key Points

  • SAT admitted Appeal No. 441 of 2025 filed by Ashok Kumar Joshi
  • Original SEBI order imposed penalty of Rs. 10 lakh and 18-month debarment
  • Appellant resigned from position on September 27, 2019
  • Show cause notice was issued on September 20, 2023 (approximately 5 years delay)
  • Investigation period covered 2009-2010 to 2020-2021
  • SAT granted stay on debarment order citing delay in issuance of show cause notice
  • Appellant must deposit 50% of penalty amount (Rs. 5 lakh) within four weeks
  • SEBI to keep deposited amount in interest-bearing account
  • Matter involves both Anurag Dalmia and Ashok Kumar Joshi as noticees

Regulatory Changes

No new regulatory changes introduced. This is an appellate order providing interim relief in an ongoing enforcement matter.

Compliance Requirements

For Appellant (Ashok Kumar Joshi):

  • Deposit 50% of penalty amount (Rs. 5 lakh) within four weeks from October 8, 2025
  • File rejoinder within three weeks after respondent files reply

For Respondent (SEBI):

  • File reply to appeal within six weeks from October 8, 2025
  • Maintain deposited penalty amount in interest-bearing account

Important Dates

  • October 8, 2025: SAT order date
  • Within 4 weeks from October 8, 2025: Deadline for 50% penalty deposit
  • Within 6 weeks from October 8, 2025: SEBI to file reply
  • Within 3 weeks after SEBI’s reply: Appellant to file rejoinder
  • January 9, 2026: Next hearing date (by consent)
  • September 27, 2019: Appellant’s resignation date (reference point)
  • September 20, 2023: Show cause notice issuance date (reference point)

Impact Assessment

Market Impact: Minimal to none. This is a case-specific appellate order relating to past conduct in Golden Tobacco Limited.

Entity Impact: Provides temporary relief to Ashok Kumar Joshi by staying the debarment order, allowing continued participation in securities market operations pending final appeal resolution. However, partial penalty payment required.

Precedent Value: The order highlights SAT’s consideration of procedural delays in enforcement proceedings, particularly the 5-year gap between resignation and show cause notice issuance, as a factor meriting interim relief.

Compliance Significance: Market participants facing similar enforcement actions may note SAT’s willingness to grant interim stays on debarment where significant procedural delays exist, subject to partial penalty deposit as security.

Impact Justification

SAT interim order affecting specific individuals in a past investigation matter. Limited broader market impact. Case-specific appellate proceedings.