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SC admits Sebi petition on Sterlite buyback

The Supreme Court on Wednesday admitted a petition filed by the Securities and Exchange Board of India challenging a Bombay high court order saying the market regulator had no locus standi in the scheme of arrangements for buyback of shares by Sterlite Industries.

A Bench comprising Justice N Santosh Hegde, Justice B N Agrawal and Justice B P Singh admitted Sebi's petition without staying the Bombay high court order after hearing Solicitor General Harish Salve and counsel B V Desai on the matter.

The high court on July 15 had dismissed an appeal filed by Sebi challenging the scheme of arrangement between Sterlite Industries Ltd and its shareholders on purchases of up to 50 per cent of the company's equity capital by the existing shareholders.

Stating that Sebi had no locus standi in the matter, the high court had said that section 391 of the Companies Act 1956, which governs SIL's buyback scheme, was independent of section 77A of the Act and did not stay the scheme.

A similar order was passed by the high court on Godrej Industries on July 30.

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