In Brief
SEBI issued an ex-parte interim order requiring an insider trader (CEO of Dynamatic Technologies) to deposit Rs 3.83 crore into an Escrow Account as notional loss avoided through share sales on inside information. The Securities Appellate Tribunal set aside the order, holding no urgency was established since the investigation had been pending for over two years. The Supreme Court upheld the Tribunal's decision on facts, affirming that while SEBI possesses power to issue ex-parte interim orders, this must be exercised sparingly and only in extreme urgent cases. The Court clarified that SEBI's interpretation regarding disgorgement would not serve as precedent and must comply with statutory requirements."
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