The Superior Court of Delhi, listened to Kairosoft AI Solutions against the Bag Board and Exchange of India (Sebi) and the EEB on Wednesday on its decision to impose the measure of graduate surveillance (GSM) in the company’s actions.
Senior Kapil Sibal lawyer, who appeared for Kairosoft, directed the defense by arguing that it was unfair to restrict trade in the company’s actions based on YouTube videos whose audience and subscriber numbers were insufficient to justify the action.
Hello, the videos could not have benefited the promoters, since they only have a 5 percent participation in the company, and the rest is a public participation. In addition, the videos were downward tasks or April 9 after a cyber complaint presented by the company, and a dissemination has also put on its website.
Administrative circular
Sibal also raised the question of the constitutionality of exchange circulars, arguing that these are administrative circular without legal support or legislet. Hey also argued against Sebi’s objections on the territorial jurisdiction of the Superior Court of Delhi in the matter that states that the company is based in the Irrepive Delhi of the EEB and Sebi in Mumbai.
The Sebi representative said the trade has not stopped or prohibited the leg, but a limit has been presented. The regulator plans to explain the GSM mechanism, its legal support and show how it is not an obstacle to the company at the next audience on Monday.
The result of this case, established in a context of greater market surveillance by Sebi after the pump and diver schemes by the promoters, could cause a reexamal of how regulatory measures are applied in the shares.
The legal battle began when the circular of April 3 of BSE placed Kairosoft in stage 4 of GSM, which is a surveillance measure to stop excessive speculation among investors. This limits the trade of shares only on Monday, it moves it to the trade segment by trade, with a price band of 5 percent and an additional surveillance tank (ASD) or 100 percent of the commercial value.
Kairosoft has challenged Sebi and Bse to set aside the exchange notice for not having a prior note and no fault or association of the company with individuals behind the videos.
Posted on April 16, 2025