NCLAT rejects BSE appeals on Demat account freezing. The National Company Law Appellate Tribunal has dismissed appeals filed by BSE challenging NCLT's authority to defreeze Demat accounts of companies undergoing insolvency resolution. BSE had argued the NCLT lacked jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code, contending such matters fall within securities law and SEBI regulations. However, NCLAT upheld the NCLT's power to order defreezing in two cases involving Future Corporate Resources and Liz Traders and Agents. The companies' Demat accounts were frozen due to unpaid listing fees and regulatory non-compliance. Resolution professionals sought to defreeze accounts to sell shares and recover funds for debt-ridden companies. NCLAT affirmed that NCLT has valid jurisdiction and the Mumbai bench orders directing BSE to vacate the freeze were properly exercised.
