InvestorQ : What happens next in the Kishor Biyani case after the SAT struck down the 1-year ban on the Biyani brothers imposed by SEBI?
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What happens next in the Kishor Biyani case after the SAT struck down the 1-year ban on the Biyani brothers imposed by SEBI?

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shrinidhi Rajan answered.
2 weeks ago
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The Securities Appellate Tribunal or SAT stayed SEBI imposed 1-year ban on Kishor Biyani and his brother pertaining to the insider trading case of 2017. In the meanwhile, SAT has directed the promoters of Future group to deposit Rs.11 crore as interim measure. The SAT hearing was held on 15 February when the above decision was taken.

The case will come up before SAT on April 12 for the next hearing. It may be recollected that SEBI had banned Biyani from the securities market for 1 year for insider trading in the shares of the company prior to their merger. The SEBI order had imposed a fine of Rs.1 crore on each of the promoters and also instructed to disgorge the wrongful gains of Rs.17.78 crore.

This case was an added irritant for the Future Group at a time when they are fighting the might of Amazon over the legitimacy of the Rs.24,713-crore scheme of arrangement with Reliance. The deal to sell all the retail and wholesale businesses of the Future group to Reliance Retail was struck in August 2020 but has been in limbo due to Amazon’s case.

Future Group counsel, Somasekhar Sundaresan, argued that the demerger deal was well known to the public since 2016, so there was no insider information. Also, Somasekhar argued that the actual terms of the restructuring were initiated in April 2017, while the purchases were made in March itself.
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