The Securities Appellate Tribunal (SAT) has reportedly reserved its order in the plea filed by Essel Group Chairman Subhash Chandra and ZEE MD Punit Goenka against the Securities and Exchange Board of India (Sebi) that barred the two from holding managerial positions or directorship in listed entities.

The father-son duo approached SAT on June 13 against the interim order by Sebi passed on June 12. Reports say that the bench reserved the order after hearing all the arguments.

Sebi's counsel Darius Khambata stated that the regulator has uncovered a series of disputed transactions that have taken place where related parties were involved. Sebi gave them 21 days to explain, but instead, they decided to approach SAT.

"They are saying they are not here on merit but on the process. The appellants, instead of rushing to the appellate tribunal, should have come to Sebi to present their case when the time was given to them," argued Khambata.

Senior advocate Janak Dwarkadas, who appeared on behalf of the father-son duo, said that Sebi has no evidence apart from bank statements and that it's wrong to conclude that the fund repayments by Essel Group entities to ZEEL are book entries.

Dwarkadas also argued that the burden rests with the regulator to prove how the transactions are bogus. Chandra and Goenka reportedly also said that Sebi did not issue a showcase notice before passing the order. They also said that Sebi didn't follow the principles of natural justice.