The CBI approached the apex court after being asked by the Delhi High Court which had also directed Essar and Loop to seek a clarification on the issue
New Delhi: The Central Bureau of Investigation (CBI) moved the Supreme Court on Wednesday for seeking a clarification whether the special court can conduct a trial of companies which are not charged under the Prevention of Corruption Act in the case arising out of the probe in the second generation (2G) spectrum scam case, reports PTI.
The probe agency approached the apex court after being asked by the Delhi High Court which had also directed Essar and Loop to seek a clarification on the issue.
The high court’s direction has come after a brief hearing on the petitions of Essar Teleholdings and Loop Telecom that the case against them, arising out of the 2G scam, be taken out of the court of the special judge to a magistrate’s court as there were no corruption charges against them.
The high court had said the apex court’s directions setting up a special court for trial of the 2G case and no judicial fora, except it, would entertain any plea in the matter were coming in its way from hearing the petitions of telecom firms.
Besides the two companies, the other accused named in the third charge-sheet in the 2G case are telecom firm Loop Mobile India, Essar group promoters Anshuman and Ravi Ruia along with Loop Telecom promoters Kiran Khaitan, her husband IP Khaitan and Essar Group director (strategy and planning) Vikash Saraf.
The charge-sheet has been filed under section 420 (cheating) and 120B (criminal conspiracy) of the IPC and the accusations against the firms are triable by a magistrate and not by the special court constituted under the PC Act for hearing the 2G case, Essar, in its petition, said.
Essar and Loop had moved the HC seeking a stay on the administrative order of the registrar of the high court which had ordered constitution of the special court.
On 2nd February the Supreme Court quashed all 122 spectrum licences granted during the tenure of former communications minister A Raja.
“In order to enhance disclosure requirements, listed entities have been mandated to disclose utilisation of funds raised upon conversion/exercise of warrants issued along with public or rights issue of specified securities,” SEBI said in a circular
Mumbai: In order to bring more transparency to capital markets, the Securities and Exchange Board of India (SEBI) on Wednesday said listed firms will have to disclose details regarding utilisation of funds raised through warrants, reports PTI.
“In order to enhance disclosure requirements, listed entities have been mandated to disclose utilisation of funds raised upon conversion/exercise of warrants issued along with public or rights issue of specified securities,” SEBI said in a circular.
It said the new rule, a part of its amendments to the equity listing agreement, will take effect immediately.
Experts said the amendment will bring more confidence and transparency in the instrument of warrants.
A warrant is the right, but not the obligation, to buy or sell a certain quantity of an underlying instrument at an agreed-upon price.
“The SEBI circular has directed that companies disclose details regarding the usage of funds raised through warrants.
The regulator is trying to monitor the reason for which companies raise the warrants and ensure that they are used for proper reason.
“This will elevate the credibility of the instrument,” SMC Global Securities strategist and head of research Jagannadham Thunuguntla said.
The regulator had in the last few days brought a number of changes in its listing norms.
Earlier this month, it notified the Institutional Placement Programme (IPP) guidelines that will allow companies to reduce promoter shareholding through private placement.
As per the new norms for IPP of shares, the companies would even be allowed to issue fresh equity to institutional investors to dilute stake of promoters.
It also permitted promoters of top 100 companies to quickly dilute their shares through a separate window on the Bombay Stock Exchange and the National Stock Exchange which has to be completed within a day.
Besides, on Tuesday SEBI modified norms for share buyback through the tender offer route under which companies will have to reserve 15% of the offer for small shareholders.
The finance ministry had earlier proposed to dissolve the SUUTI and set up a new entity to buy government equity in PSUs from funds raised by pledging the existing assets of the SUUTI. The proposal, however, may be shelved in view of the SEBI guidelines for dilution of promoter stake by way of auction and private placement
New Delhi: The finance ministry is planning to drop the proposal to dissolve the Specified Undertaking of UTI (SUUTI), in view of the recent Securities and Exchange Board of India (SEBI) guidelines opening other windows for selling government equity in PSUs to meet the disinvestment target of Rs40,000 crore this fiscal, reports PTI.
“We will take final decision (whether to dissolve SUUTI or not) within a week,” a top finance ministry official told PTI.
The ministry had earlier proposed to dissolve the SUUTI and set up a new entity to buy government equity in public sector undertakings from funds raised by pledging the existing assets of the SUUTI.
The new entity, it was estimated, could have raised at around Rs50,000 crore by pledging the assets of SUUTI.
The proposal, however, may be shelved in view of the SEBI guidelines for dilution of promoter stake by way of auction and private placement. These norms will help the government to offload its equity in the PSUs.
“Now the government also has option to raise money by selling shares in state-run firms through a new auction method approved recently by the SEBI,” the official said, adding that this has necessitated a rethink.
Although the government has a target of rising Rs40,000 crore during 2011-12 through disinvestment, it had so far mopped up only Rs1,145 crore through sale of its equity in Power Finance Corporation (PFC).
Hard pressed for funds, the government has been looking for alternate ways to raise resources to bridge the fiscal deficit which is expected to exceed the budget estimate of 4.6% of the gross domestic product (GDP).