Regulations
SAT sets aside SEBI order banning directors of Denim

While setting aside orders issued by SEBI, the Tribunal also pulled up the market regulator for delay in finalisation of proceedings against two directors of Denim Enterprises

 
New Delhi: The Securities Appellate Tribunal (SAT) has set aside orders issued by  Securities and Exchange Board of India (SEBI) banning Denim Enterprise Directors BJ Shah and SB Bafna from accessing markets, saying that the market regulator could not establish the charges against the duo, reports PTI.
 
"....we hold that the appellants (Shah and Bafna) cannot be held guilty of violating regulation 5 of FUTP Regulations.
 
The order of the Whole-time Member is set aside. In the result the appeals are allowed with no order as to costs," said a two-member bench of SAT.
 
After a probe into a 'artificial' rise in Denim's share price between November 1999 and March 2000, SEBI had charged the directors with publication of false/misleading information about the company and alleged this led to rise in share prices.
 
The tribunal said, "On a consideration of the facts and evidences on record, we have to conclude that the Board has not established that the appellants involved themselves or were responsible for making any statement or disseminated any information which is false or misleading." 
 
SAT also pulled up SEBI for delay in finalisation of proceedings against them and observed that it "causes undue hardship to the delinquent in putting forth timely defense".
 
SEBI had issued notice in April 2009, but the proceedings culminated only in May 2012.
 
"The proceedings could have been completed within a reasonable period of time, especially when the appellants have been restrained from taking part in market operations," said SAT.
 
SEBI in May this year had restrained Shah and Bafna from accessing the securities market for two years. They were prohibited from buying, selling or dealing in securities.
 
The two had contended that they were not involved in the day to day affairs of the company and had no role whatsoever in the alleged publication of misleading information in the newspapers.
 

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SEBI disposes of show-cause notices issued to Jayant Vitamins

In its order SEBI disposed off the notices saying there are no complaints pending against Jayant Vitamins and three of the company's directors

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of show-cause notices issued to Jayant Vitamins Ltd and its three directors, following the entities resolving investors' complaints, reports PTI.
 
The SEBI had issued show cause notices in 2009 after it was found that a large number of complaints by investors remained unresolved.
 
In its order SEBI disposed off the notices saying there are no complaints pending against the company.
 
In its order, SEBI said: "...As on 12 September 2012, there are no complaints pending against the company. Since the company had resolved all pending investors' complaints that were the cause for the issuance of the show cause notices (SCNs)as well as other complaints." 
 
"...hereby dispose of the show cause notice issued against the company, Jayant Vitamins and the show cause issued to its directors, Projesh Kumar Ray, Lalit Kumar Mishra and Hiten Purshottam Mange, accordingly," it added.
 
The regulator in 2008 had asked Jayant Vitamins to resolve all the 173 investors' grievances pending against it within a period of 30 days. The company, however, failed to redress the investors' grievances.
 
Consequently, SEBI had issued a Show Cause Notice in 2009 to the company "advising it to show cause as to why it should not be restrained from accessing the securities market and prohibited from dealing in securities till all pending investors' grievances against the it are resolved." 
 
Besides, SEBI had also issued notice to the company's directors - Projesh Kumar Ray, Lalit Kumar Mishra and Hiten Purshottam Mange.
 

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Suzlon seeks 4-month extension to repay FCCBs worth $220 million

Suzlon said the extension would allow it to close various financing measures and drive alignment between all stakeholders on allocation of cash resources

 
New Delhi: Wind turbine maker Suzlon Energy has sought a four-month extension from bond holders for redeeming foreign currency convertible bonds (FCCBs) worth over $220 million that are due next month, reports PTI.
 
Suzlon said the extension would allow the company to close various financing measures and drive alignment between all stakeholders on allocation of cash resources.
 
"We intend to redeem the outstanding October FCCBs at the end of the proposed four-month extension, subject to requisite approvals," a company spokesperson said in a statement.
 
Suzlon issued $200 million zero coupon convertible bonds and $20.8 million worth convertible bonds having a coupon rate of 7.5%. These are due in October.
 
According to the statement, the meetings of the bond holders are proposed to be held on 10th October.
 
"We are actively working on various sources of funding; including from the sale of non-critical assets, fresh debt, equity-linked and/or equity fund raising through the domestic and international capital markets, and additional secured leverage at an international subsidiaries-level by optimally re-balancing our debt across various assets," it said.
 
The spokesperson said these initiatives would enable the company to optimally allocate resources between business requirements and debt obligations "in a manner that will allow us to obtain relevant approvals from our senior secured lenders".
 
Suzlon's net debt touched Rs11,165 crore at the end of March 2012.
 

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