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Securities and Exchange Board of India v. IL and FS Securities Services Ltd.

Civil Appeal · 2019 INSC 968Decided 27 Aug 2019
Civil Appeal Nos. 5395-5398 of 2019
Justice Mohan M. Shantanagoudar · Justice Sanjiv Khanna

Background

This is an interim order, not a final judgment. SEBI appealed in a dispute involving IL&FS Securities Services Ltd. and mutual fund units held as security.

Decision Breakdown

This is an interim order, not a final judgment. The Court vacated an earlier interim freeze on payment, gave certain parties the option to convert or encash the mutual funds held as security, and directed that the proceeds be kept in a fixed deposit until further orders. It left open the questions of the jurisdiction of SEBI and the Securities Appellate Tribunal for the final hearing and listed the case after four weeks.

Lesson Learnt

There is no final ruling yet. The interim arrangement only preserves the money until the appeal is heard.

Official source (sci.gov.in)View Judgment (PDF)

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