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) Mumbai issued an order on October 8, 2025 in Appeal No. 441 of 2025 filed by Ashok Kumar Joshi against SEBI’s enforcement action related to Golden Tobacco Limited. The tribunal granted partial stay on the 18-month debarment order while requiring the appellant to deposit 50% of the Rs. 10 lakh penalty within four weeks. The stay on debarment and penalty recovery is conditional upon this deposit, which will be kept in an interest-bearing account by SEBI. The case relates to investigation period between 2009-2010 to 2020-2021.

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
  • Appellant resigned from position on September 27, 2019
  • SEBI issued show cause notice on September 20, 2023 (approximately 5 years after resignation)
  • Investigation period covered 2009-2010 to 2020-2021
  • SAT granted stay on debarment order citing delay in issuance of show cause notice
  • Appellant required to deposit 50% of penalty (Rs. 5 lakh) within four weeks
  • Penalty amount to be kept in interest-bearing account by SEBI
  • Matter relates to Golden Tobacco Limited with noticees being Anurag Dalmia and Ashok Kumar Joshi

Regulatory Changes

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

Compliance Requirements

  • Ashok Kumar Joshi must deposit 50% of Rs. 10 lakh penalty (Rs. 5 lakh) within four weeks from October 8, 2025
  • SEBI must maintain the deposited amount in an interest-bearing account
  • Respondent (SEBI) granted six weeks to file reply
  • Appellant granted three weeks thereafter to file rejoinder
  • Stay on debarment and penalty recovery is conditional upon timely deposit

Important Dates

  • October 8, 2025: SAT order date
  • November 5, 2025: Deadline for 50% penalty deposit (four weeks from order)
  • January 9, 2026: Next hearing date (by consent)
  • Investigation Period: 2009-2010 to 2020-2021
  • September 27, 2019: Appellant’s resignation date
  • September 20, 2023: SEBI show cause notice date
  • 2021: Year when facts of case came to light

Impact Assessment

Market Impact: Limited direct market impact as this relates to a specific enforcement action appeal. However, it demonstrates SAT’s consideration of procedural delays in SEBI enforcement actions.

Legal Precedent: The order highlights that SAT may grant interim relief when there are significant delays between resignation/investigation period and issuance of show cause notice (5-year gap in this case).

Parties Affected:

  • Ashok Kumar Joshi receives partial relief from immediate debarment upon deposit of 50% penalty
  • Golden Tobacco Limited matter continues under adjudication
  • Anurag Dalmia also listed as noticee in the matter

Procedural Significance: The tribunal’s willingness to stay debarment based on delay in issuing show cause notice may be relevant for similar cases where enforcement actions are initiated years after the events in question or after the person has ceased to hold the position.

Impact Justification

SAT order granting partial relief in enforcement matter; significant for parties involved but limited broader market impact