With the Securities Appellate Tribunal (SAT) giving a split verdict in the plea filed by PNB Housing Finance against market watchdog Sebi, Carlyle Group’s Rs 4,000-crore stake deal in the housing finance firm is likely to end in the Supreme Court.

The two-judge bench differed on the Sebi’s action on PNB Housing. While Justice Tarun Agarwala held the judgment in favour of PNB Housing, Justice Joshi supported the market regulator’s action.

In such an indecisive judgment, the matter is referred to the presiding officer. But in this case the tribunal is functioning with just two members.

Under the current circumstances, the interim order of SAT, dated 21 June 2021, will continue to hold till further orders. SAT had prohibited PNB Housing Finance from disclosing the results of the EGM vote. In effect, PNB Housing Finance will not be allowed to allot preferential shares to Carlyle Group and other investors.

PNB Housing Finance had moved the SAT against the Securities and Exchange Board of India’s (Sebi) directive which restrained the mortgage lender from going ahead with the preferential allotment of shares to the Carlyle Group unless the valuation was done by an independent valuer.

Both the parties can now move the Supreme Court against the tribunal’s order.