InvestorQ : What does it mean when you say that SAT has issued a split order in the PNB Housing case?
Anamika Sodhani made post

What does it mean when you say that SAT has issued a split order in the PNB Housing case?

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Angel dcosta answered.
4 months ago
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It is an interesting verdict passed by the Securities Appellate Tribunal or SAT. In a verdict, that is virtually a split order in the PNB Housing versus SEBI case with regard to the Carlyle deal, the SAT has left things ambiguous. The SAT Bench raised questions about the locus standi of SEBI to stop voting at EGM. However, the SAT bench upheld the issue of notification by SEBI was valid and EGM vote cannot go ahead without valuation report.

In a way, there is no clear verdict or actionable point from SAT. The split verdict means that PNB Housing will have to approach Supreme Court if it wants to proceed with the transaction and only if the Supreme Court overrules SEBI, can the transaction proceed. SEBI had pointed out that the independent valuation was mandatory as per the Articles of Association of the company. Effectively, the SEBI verdict stands as of now.

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