Kwality Dairy pays Rs3 crore to SEBI to settle allegations

SEBI said the proceedings against Kwality Dairy for non-compliance with the guidelines, 'stand settled and it will not initiate any enforcement action against the company

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of the case against Kwality Dairy (India) Ltd after the company paid Rs3 crore to settle alleged violation of disclosure norms related to preferential allotment of shares, reports PTI.


The case related to non-compliance with certain norms in connection with Kwality Dairy's preferential allotment of five lakh shares to its promoters during 1999-2000.


In an order dated 30th October, SEBI said the proceedings against Kwality Dairy for non-compliance with the guidelines, "stand settled and SEBI shall not initiate any enforcement action against the applicant for the same".


Post the preferential allotment of shares, stock exchange BSE noticed that Kwality Dairy did not comply with certain disclosure norms. Subsequently, the bourse directed the company to obtain a no-objection certificate from SEBI.


Among others, SEBI rules require a company to furnish various details of proposed shares issue in the notice for general meeting that is sent to shareholders.


Pursuant to the preferential allotment, the shares were converted into equity shares on 14 June 2002.


"Subsequently, when these equity shares were proposed to be listed on the BSE, it was then advised by the BSE that that above-mentioned clauses of the DIP Guidelines had not been complied with by the applicant and that the applicant should obtain a no-objection letter from SEBI," the order said.


In view of the aforesaid non-compliances, the applicant filed the consent application, it added.


SEBI said its High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of Rs3 crore. The same was approved by the panel of whole time members of SEBI, it added.


The market regulator said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by Kwality Dairy is found to be untrue.


FIIs allowed to reinvest half of investment in debt holdings

From January 2014 onwards, FIIs and their sub-accounts can re-invest 50% of their debt holdings

Mumbai: Easing norms for foreign investors, market regulator Securities and Exchange Board of India (SEBI) has allowed them to re-invest half of their investments in debt holdings to the next calendar year, starting from January 2014, reports PTI.


Once the relaxation is in place, foreign institutional investors (FIIs) and their sub-accounts can re-invest 50% of their debt holdings.


"With a view to provide operational flexibility, beginning 1 January 2014, it has been decided that FIIs/sub-accounts can reinvest during each calendar year to the extent of 50% of their debt holding at the end of previous calendar year," SEBI said in a circular.


SEBI has said the utilisation period for government securities and corporate debt limits, allocated through bidding process, to 30 days and 60 days, respectively.


This would be applicable for both old-and long-term infrastructure limits.


Further, SEBI has relaxed the investment limits for FIIs regarding corporate debt in the long-term infrastructure category.


"It has been decided that FII may avail limits in the corporate debt long-term infra category without obtaining SEBI approval till the overall FII investments reaches 90% of the limit...," the circular said.


Once the limit is touched, auction mechanism would be initiated for allocation of remaining limits, it added.


SEBI said it would put in place a mechanism to monitor the utilisation of the limit.


Overseas investors had poured in Rs7,852 crore (about $1.5 billion) in the Indian debt market in October, the highest in eight months.


This was the highest net investment by FIIs in debt securities since February, when they had infused Rs10,016 crore.


Ban on NGHI Developers to continue: SEBI

The ban on NGHI, its promoters and its directors would continue, till the schemes of the company are wound up and all the monies are refunded to the investors

Mumbai: Jaipur-based NGHI Developers and related entities will remain barred from collecting money from investors and accessing the capital market for their failure to adhere to interim regulatory orders, Securities and Exchange Board of India (SEBI) said, reports PTI.


"The interim order restraining NGHI, its promoters and its directors namely Pipal Singh, Bakshish Singh and Avtar Singh from accessing or dealing in the securities market shall continue, till the schemes are wound up and all the monies are refunded to the investors, to the satisfaction of SEBI," the market regulator said in an order.


The company was collecting funds from the public for developing plots of land through its plans.


SEBI said the restraining order would continue as the company has failed to wind up its scheme --collective investment schemes (CIS)-- and refund the money collected by it with returns to investors within a period of one month from the date of interim order. The interim order was passed on 9th July this year.


The entities also failed to deposit the money collected from the investors under under various schemes in a separate bank account within the stipulated period of three days.


"NGHI has been found operating CIS without obtaining a certificate of registration from SEBI... Therefore, it is necessary that such schemes of NGHI are directed to be wound up and the monies of the investors, which have been invested in the schemes, are refunded to them by NGHI," the regulator said.


SEBI had said it appears that NGHI is related to another company -- Nicer Green Forests Ltd -- which is also under the regulator's radar.


SEBI said it had found that the company was substituting Nicer Green's investment certificates with the NGHI bonds.


It appears that NGHI promoters and directors are using the company as a vehicle to subvert the SEBI order against Nicer Green, SEBI said.


SEBI through an interim order dated 9 July 2012 had prohibited these entities from trading in the securities market and had also restrained from accessing the securities market.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)