validity of interim order given by Whole Time Member of SEBI u/s 11B of SEBI Act
NEERAJ PATHAK
(Querist) 17 February 2011
This query is : Resolved
Dear Sir(s),
There is a company for which a direction is issued for certain restrictions on Company by Whole Time Member, SEBI, u/s 11B of the SEBI Act till further order for which a personal hearing has been organised.this direction is issued before 4 months.but till now no ay further order is given by SEBI.I heard that after 120 days the effect of such type of direction ended automatically. whether it is true? if yes than what are provisions of law for the same. can any one give own precious advice.
I will be more obliged.
R.Ramachandran
(Expert) 17 February 2011
There is no such thing as automatic expiration of the effect of any interim order after a lapse of 120 days. Until further order means, until further orders. Unless any specific order is passed after the passing of the interim order restricting certain activities, then the interim order will continue to have effect. In case, the party wants the interim order to be vacated or modified, then it has to move an application to that effect.
