In Brief
SEBI's Chief Executive Officer Udayant Malhoutra sold shares of Dynamatic Technologies Ltd based on inside knowledge of financial results. SEBI passed an ex-parte interim order directing him to deposit Rs 3.83 crore (notional loss avoided) into escrow. The Tribunal set aside the order, finding no urgency justified the ex-parte action three years after the trade. The Supreme Court upheld the Tribunal, holding that SEBI's power to issue interim orders must be exercised sparingly and only in extreme urgent cases, requiring consideration of balance of convenience and irreparable injury—none of which existed here.
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