An Indian tribunal put on hold on Thursday a directive to ban Vivek Kudva of Franklin Templeton after he challenged it saying the market regulator had“overstepped” its powers in taking the decision.

Kudva, head of Asia Pacific distribution at Franklin Templeton, was barred last month by the Securities and Exchange Board of India (Sebi), which said he and his family members used non-public information to sell holdings worth about $4 million in Franklin debt funds that were shut down weeks later and caused investor panic.

The regulator had imposed a one-year market ban on Kudva and his wife and fined them a total of $1 million. It said it was not “fair conduct” as Kudva was privy to non-public information.

In an appeal heard by the Securities Appellate Tribunal on Thursday, Kudva argued he acted only on public information. Sebi objected to his position, but the tribunal judges decided to put the ban on hold while his appeal is heard. But Kudva will still need to deposit half of the penalty imposed on him, the tribunal said.

In his 232-page appeal filing, Kudva had argued that Indian law prohibits unfair trade practices, but mutual fund redemptions were not a “trade” and were akin to withdrawing one’s own money from a bank. Sebi had “overstepped its authority and misused the discretion” while passing its order and there was no reasoning in the regulator’s decision “to justify the draconian directions and restrictions,” said the filing by Kudva.