Regulations
SAT dismisses International Paper appeal in AP Paper case

The two-member SAT bench found that the International Paper and promoters of AP Paper Mill have failed to provide SEBI with sufficient evidence to justify payment of non-compete fee to 15 promoter entities

 
New Delhi: The Securities Appellate Tribunal (SAT) has dismissed a petition by International Paper against a Securities and Exchange Board of India (SEBI) direction concerning payment of non-compete fee by it to erstwhile promoters of Andhra Pradesh (AP) Paper Mill, which has been acquired by the global company, reports PTI.
 
The SAT, however, gave a four-week reprieve International Paper to allow it to appeal before the Supreme Court.
 
International Paper, a global paper and packaging firm, had entered into an agreement in March 2011 to acquire 53.46% stake from the promoters of AP Paper for Rs1,112 crore.
 
As part of the agreement, an exclusivity fee of Rs21.20 per share was also to be paid to the promoter group sellers.
 
However, SEBI said that only five out of 20 promoters of Andhra Pradesh Paper Mill were entitled for non-competence fee and asked International Paper Company to revise the offer price for the rest 15 promoters.
 
The two-member SAT bench found that the buyers and sellers in the deal have failed to provide SEBI with sufficient evidence to justify payment of non-compete fee to 15 entities.
 
"We, therefore, do not find any merit in the appeal and the same is dismissed with no order as to costs," said SAT.
 
Earlier, on 11 August 2011 passing an interim order SAT had directed the company to go ahead with the public offer after depositing a sum in an escrow account calculated on the basis of Rs130.73 per share.
 
"The appellants may now pay the balance amount to the shareholders who had offered their shares in the open offer, within a period of six weeks from the date of this order," the tribunal said.
 
SAT, however, on the request of the acquirers has put its order in abeyance as they wanted to explore possibilities to approach the Supreme Court in order to challenge the order.
 
International Paper Company along with IP Holdings Asia has made an open offer to acquire additional stake in Andhra Pradesh Paper Mill.
 

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SEBI notifies new governance rules for depositories

SEBI has issued new rules for depository participants, NSDL and CDSL related with the composition of their boards, salaries of top officials and their listing

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has notified new governance rules for the depositories including those related to composition of their boards, salaries of top officials and their listing, reports PTI.
 
Depositories are those entities that hold securities deposited by others and where these securities are exchanged, while depository participants (DPs) largely function as agents of the depositories and as intermediaries between the depository and the investors.
 
In India, there are two major depositories, National Securities Depository Ltd (NSDL) and Central Depository Services Limited (CDSL).
 
As per the regulations notified by SEBI, a depository board would have to include shareholder directors, public interest directors and managing director.
 
Besides, the chairperson would have to be elected from amongst the public interest directors, whose number cannot be less than the number of shareholder directors.
 
On the other hand, the Managing Director cannot be included in either the category of public interest directors or shareholder directors.
 
SEBI said that all directors would have to abide by the Code of Conduct specified under its regulations and a compensation committee would determine the pay of key management personnel.
 
SEBI said that a depository may apply for listing of its securities on a recognised stock exchange, subject to certain conditions.
 
Also, depositories would need to segregate its regulatory departments from other departments and would need to have a 'Business Continuity Plan' for data and electronic records to prevent, prepare for, and recover from any disaster.
 
In order to ensure the segregation of regulatory departments, every depository shall adopt a "Chinese Wall" policy which separates the regulatory departments of the depository from the other departments.
 
The employees in the regulatory departments shall not communicate any information concerning regulatory activity to any one in other departments.
 
The employees in regulatory areas may be physically segregated from employees in other departments including with respect to access controls.
 
In exceptional circumstances employees from other departments may be given confidential information on "need to know" basis, under intimation to the Compliance Officer.
 

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Sahara sends two truck-loads of papers to SEBI, third truck on its way!

SEBI is reportedly thinking about hiring a place or godown for storing these documents and has also asked Sahara to categorise all these papers in proper manner before submission

Market regulator Securities and Exchange Board of India (SEBI)'s woes with Sahara Group are growing as it sought to approach the Supreme Court on the business conglomerate's non-compliance to the 10th September deadline for submission of documentary evidence of money collected from investors through issue of debentures, reports PTI.

 

According to sources, SEBI is thinking about hiring a place or godown for storing these documents and has also asked Sahara to categorise all these papers in proper manner before submitting it to the market regulator.

 

Sahara Group is believed to have dispatched two truck-loads of documents to SEBI's headquarters in Mumbai on the issue related to Supreme Court-directed refund of Rs24,000 crore to an estimated three crore investors, while a third truck is said to be on its way and would reach on Thursday.

 

Officials at neither SEBI nor Sahara group were willing to speak specifically about the ongoing stand-off between them.

 

However, SEBI sources said Sahara did not comply with the 10th September deadline, set by the apex court, with regard to the money collected through an instrument called 'Optionally Fully Convertible Debentures (OFCDs).

 

Sources in the know said a truck full of documents containing such documents reached SEBI's headquarters on 10th September evening after the office hours, although the company sources claimed that the regulator was intimated hours in advance about their consignment being stuck at a toll gate on way to SEBI offices.

 

While the consignment was not received by SEBI as it reached after office hours, another truck full of documents reached SEBI offices on Tuesday and a third consignment is expected to reach there on Thursday, sources said.

 

While the officials say that SEBI is fully equipped to handle such high volume of documents, it may still seek the apex court's guidance on Sahara not meeting the deadline.

 

Speaking to reporters in Delhi recently, SEBI Chairman UK Sinha had said that that the regulator is fully equipped with any matter related to concern of shareholders and investors.

 

He was replying to reports about SEBI setting up a special 'Sahara cell' to deal with the case, wherein the Supreme Court has upheld the regulator's order directing the group to refund thousands of crore collected from investors with interest.

 

The apex court on 31st August directed two Sahara companies to refund around Rs24,000 crore to their investors within three months with 15% interest per annum.

 

It said that if the companies--Sahara India Real Estate Corp (SIREC) and Sahara Housing Investment Corp (SHIC) -- fail to refund the amount then SEBI can attach properties and freeze bank accounts of the companies.

 

The Court has also appointed one of its retired judges Justice BN Aggarwal to oversee SEBI's action in this regard.

 

Reacting to the court order, the Sahara group had assured its depositors and investors that their money is safe and there will not be any delay in payment commitment to them.

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COMMENTS

prerna

4 years ago

as my money is with sahara since 2005 jab paisa lagaya tab loan le k lagaya sahara ppl. per viswaas kerk. ab paisa mangte hai to 3,4 months k baad milega . paise ki jaroorat hai aur apna hi paisa ni mil pa ra . in 3,4 mahine me to paise ki tangi se hum suiside ker leenge aur jiska jimmewaar sahara INDIA PARIWAAR HOGA . AUR MR. SUBRORO ROY HONGE .MR. SUBROTO NE TO LAGTA HAI APNE PARIWAAR KO PAALNE SOCHTE HAI BAAKI KE NA TO PARIWAAR HAI NA HI BACHCHE. WE NEED OUR MONEY BACK BADLY.

REPLY

Vikas Gupta

In Reply to prerna 4 years ago

Whatever u say, there is no effect either on Subroto Roy or any of his employees.

anand desai

4 years ago

If you cannot Convince then Confuse.... This seems to be Sahara's strategy in dumping around a million sheets of crap papers . SEBI itself I doubt has the ability to browse through and understand. They will keep on dumping such stuff on the regulators thereby creating confusion; buying time and on the other hand technically being correct of having provided the info.Crazy Company'''' Crazier Regulator

Nem Chandra Singhal

4 years ago

SEBI would have think of it, before hand as it is dealing with private comapnies whose work culture are different than the Govt. Institutions. Not assessing such risks is the failure of SEBI. Always Danda will not work.

Vikas Gupta

4 years ago

Sahara Group Companies are 1 of the most Corrupted & manupulated group of India. I was working with Sahara as a Worker & I know the management & the Employees. They are the most corrupt ones right from Top to bottom.

Vinay Isloorkar

4 years ago

13.9.12

Attack, they say, is the best form of defence.The "emotionally yours" Sahara group has scored a point. Give the devil his due. Mt sympathies for the moment lie with Sahara.

Vinay Isloorkar, Pune

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