SAT Stays Sebi Order Against Prabhudas Lilladher

The Securities Appellate Tribunal (SAT) has temporarily stopped an order by the Securities and Exchange Board of India (Sebi) that was preventing Prabhudas Lilladher, a brokerage firm, from taking on new business for a week.

Sebi had found that Prabhudas Lilladher had broken several rules, including not having enough money to cover client funds and incorrectly reporting client information.

The brokerage firm argued that these were mistakes and that Sebi had not punished other firms as severely for similar issues.

SAT has given Sebi six weeks to respond to the brokerage's appeal and has allowed Prabhudas Lilladher to continue its business while the appeal is being considered.