Description

Securities Appellate Tribunal order dated December 17, 2025 regarding SEBI's interim order in insider trading matter involving IEX scrip, requiring appellants to deposit Rs. 15 Crore and provide property lien.

Summary

The Securities Appellate Tribunal (SAT) issued an order on December 17, 2025 in Appeal No. 535 of 2025 concerning SEBI’s interim order dated October 15, 2025 against four individuals - Narendra Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar - for alleged insider trading in Indian Energy Exchange (IEX) scrip. SEBI’s original order required impounding of Rs. 43.76 Crores and restrained appellants from accessing securities markets. SAT modified the terms requiring appellants to deposit Rs. 15 Crore in a nationalized bank with lien in SEBI’s favor and provide valuation certificates for immovable properties worth Rs. 12 Crore.

Key Points

  • SAT Appeal No. 535 of 2025 filed against SEBI’s ex-parte interim order dated October 15, 2025
  • Four appellants: Narendra Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar (all residents of Haryana)
  • Original SEBI order impounded Rs. 43.76 Crores and restrained market access
  • Appellants initially proposed depositing 50% of impounded amount, later revised to 25% plus immovable property security
  • SAT bench comprised Justice P.S. Dinesh Kumar (Presiding Officer), Ms. Meera Swarup (Technical Member), and Dr. Dheeraj Bhatnagar (Technical Member)
  • Matter relates to insider trading allegations in IEX (Indian Energy Exchange) scrip
  • Appellants represented by advocate Bimal Rajasekhar; SEBI represented by advocate Prachi Pandya

Regulatory Changes

No new regulatory framework changes. This circular communicates a judicial direction from SAT modifying the implementation of SEBI’s existing interim enforcement order in a specific insider trading case.

Compliance Requirements

For the Four Named Appellants:

  1. Property Valuation Submission (Within 1 Week):

    • Submit affidavit to SEBI with valuation certificate of immovable properties
    • Valuation must be conducted by certified valuer empaneled with Income Tax Department
    • File copy of same affidavit and certificate with SAT

  2. Monetary Deposit:

    • Deposit Rs. 15 Crore in a nationalized bank
    • Lien to be marked in favor of SEBI on the deposit

  3. Property Security:

    • Provide lien on immovable properties valued at Rs. 12 Crore
    • Security to remain until completion of proceedings before SEBI and SAT

  4. Ongoing Proceedings:

    • Appellants retain liberty to file reply/objections before SEBI
    • Both parties subject to strict timeline for completion of SEBI proceedings

Important Dates

  • October 15, 2025: SEBI issued original ex-parte interim order
  • December 17, 2025: SAT passed this order modifying compliance requirements
  • One week from December 17, 2025: Deadline for appellants to submit property valuation affidavit to SEBI and SAT
  • February 6, 2026: BSE circular date communicating SAT order

Impact Assessment

Market Impact: Limited direct market impact as this affects four specific individuals accused of insider trading. However, demonstrates SEBI’s continued enforcement vigilance in insider trading cases and SAT’s role in balancing enforcement with procedural fairness.

Regulatory Significance: Illustrates the appellate process framework where SAT can modify SEBI interim orders while maintaining regulatory objectives. The reduced immediate cash deposit requirement (Rs. 15 Crore versus original Rs. 43.76 Crore) balanced with property lien shows SAT’s approach to ensuring compliance while considering appellants’ financial constraints.

Precedential Value: Establishes that appellants in SEBI enforcement matters can negotiate modified compliance terms through SAT while maintaining substantive regulatory protections through combination of partial cash deposits and property liens.

IEX Stock Impact: No direct impact on IEX trading or operations; matter relates to alleged insider trading by external parties in IEX scrip during an unspecified prior period.

Impact Justification

High importance due to significant insider trading enforcement action with Rs. 43.76 Crore impounding order and SAT directive for Rs. 15 Crore deposit. Medium market impact as it affects specific entities rather than broad market participants.