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SAT questions Sebi's stay on Carlyle deal with PNB Housing Finance

Mint,   Business Standard  

PNB Housing Finance Ltd's contested share sale to Carlyle Group and others took a new turn on Tuesday, with the Securities Appellate Tribunal (SAT) questioning how markets regulator Sebi could stay the process before the company's shareholders could vote on the proposal in an EGM. SAT said Sebi tried to pre-empt the outcome of the EGM. “At what stage can Sebi step in and decide the affairs of a company? Is it fair for the regulatory authorities to step in prior to the shareholders taking a decision? How can you say the decision is fait accompli? Do you think the shareholders are dummies?” were the questions SAT asked of Sebi. SAT added that the regulator could have waited till the completion of the EGM before passing an order. The tribunal adjourned the hearing to Friday.