Regulations
SEBI drops charges against individual in Bank of Rajasthan case

SEBI said allegations of breach of various regulations by Dinesh Shyamsing Saini could not be established and therefore he is been absolved of the charges

 

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed off a case against an individual for his alleged involvement in irregularities on part of Bank of Rajasthan’s (BoR) former promoters, reports PTI.

 

SEBI said allegations of breach of various regulations by Dinesh Shyamsing Saini "do not stand established" and therefore he is been absolved of the charges.

 

Saini had served as director of five companies -- 21st Century Entertainment, Ahmednagar Investments, Cyber Info Zeeboomba.com, EDC Securities and Giriganga Investment -- alleged to be promoter group companies of BoR.

 

SEBI had alleged that incorrect disclosures were made by the promoters of BoR and their persons acting in concert (PACs) between June 2007 to December 2009.

 

However, in its order issued yesterday, SEBI said Saini was not the director of the companies during the period for which the probe was conducted by the regulator.

 

"...transactions by the five companies were made upto March 2009 and the noticee was appointed director of the company on 19 December 2009 i.e., much before his appointment as a director of the five companies," SEBI said in its order issued yesterday.

 

A probe by SEBI had found that BoR's then promoters, led by Pravin Kumar Tayal, along with some companies that were connected to him and his relatives, by way of their continuous disclosure publicly announced that their stake had come down from 44.18% at the end of three months period ended June 2007 to 28.6% as on quarter ending December 2009.

 

However, in reality, the holding of the promoters increased with the active collusion of front entities.

 

Shareholding of promoters of BoR with PACs had increased from 46.8% in June 2007 to 63.15% in December 2009.

 

BoR was later acquired by ICICI Bank.

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SEBI slaps Rs2 lakh fine on individual for fraudulent trading in Empower Ind.

SEBI found that shares of Empower Industries surged from Rs81 to Rs113 during 18 trading days with the total trading volume at 2.17 lakh shares and Kothari had allegedly been party to the circular movement and aided and abetted EIIL promoter-director Devang Master in manipulating the shares

 

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs2 lakh on an individual for his alleged role in fraudulent trade in shares of Empower Industries, reports PTI.

 

In its order, SEBI said it is imposing “a penalty of Rs2 lakh on Nilesh Kothari in terms of the provisions... of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations”.

 

The matter relates to a probe conducted by SEBI in the shares of Empower Industries India (EIIL) during 16th February and 11 March 2005.

 

In the investigation, SEBI found that the company’s share surged from Rs81 to Rs113 during 18 trading days and the total trading volume stood at 2.17 lakh shares.

 

Kothari had allegedly been party to the circular movement and had had aided and abetted EIIL promoter-director Devang Master in manipulating the shares of the company.

 

SEBI noted that Kothari along with Devang had “carried out transactions in the market that led to a rise in the volume of the scrip and thereby induced the gullible investors”.

 

“...it does not appear to be a mere coincidence that the company made false announcements that facilitated in creating a general interest in the scrip and helped Devang and the noticee in carrying out their nefarious designs,” SEBI said.

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COMMENTS

Vaibhav Dhoka

4 years ago

Good to hear SEBI acts.

RBI plans inflation-indexed bonds; may let banks buy back gold

Governor Subbarao also said the government and the RBI are working on various proposals to reduce gold imports

 

Mumbai: In a bid to wean away people from gold that is increasingly used as a hedge against inflation, the Reserve Bank of India (RBI) has said it is toying with the idea of launching inflation-indexed bonds (IIBs), apart from allowing banks to buy back gold, reports PTI.

 

“We introduced that (IIBs) some years ago but that didn't take up due to some design flaws. Since then, we have been trying to redesign it...” RBI governor D Subbarao said at the customary post-policy conference.

 

“From our side, the attraction of the IIBs is to wean people away from gold... if you provide an asset that gives inflation-indexed return (then they will invest in it).”

 

Certain issues were to be worked out, he said. “There were several questions apart from the design of the bond.

 

About which inflation index, do we peg to—WPI, CPI—and if we peg it to CPI, which is above 10% then what interest rate will be offered which will attract retail investors?” he said.

 

Subbarao also spoke about the issues related to timing the launch as the government may want to do it during falling inflation, while customers would want it during rising inflation.

 

Referring to the possibility of disruption of the G-Secs market due to launch of IIBs, Subbarao said, “One question which hunts us all the time is whether this will disrupt the G-Secs market.

 

“Because it is a wedge between the yield of IIBs and that of the G-Secs. However, if we educate investors they will see that this is pegged to inflation over a cycle and not to a particular point of time. Then, people will understand and invest in this”.

 

The governor also said the government and the RBI are working on various proposals to reduce gold imports. “We are shortly going to also consider whether we should allow banks to buyback gold. There are some regulatory prescriptions, where it is implied not very direct, says banks can’t buy back gold. That also we are examining.”

 

Higher gold import has taken a heavy toll on the economy with the current account deficit touching 5.4% in the second quarter. Recently, the government increased the import duty on gold to 6% from 4% to reduce inward shipments.

 

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