Regulations
SEBI slaps Rs10 lakh fine on Alka Securities promoter

SEBI imposed a fine of Rs10 lakh on Mahendra Pandey one of the promoters of Alka Securities for alleged violation of disclosure norms

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs10 lakh on one of the promoters of Alka Securities Ltd (ASL), Mahendra Pandey, for alleged violation of disclosure norms, reports PTI.

 

The order comes about a year after the Securities Appellate Tribunal (SAT) had set aside SEBI's penalty against Pandey related to non-compliance with the disclosure norms.

 

At the time, SAT had directed SEBI to proceed afresh in the case on the ground that the findings of adjudicating officer did not clarify if Pandey was an officer of the ASL.

 

As per norms, a disclosure has to be made by a person who is a director or officer of a listed company.

 

In its latest order, SEBI imposed a fine of Rs10 lakh on Pandey confirming that he is a promoter of ASL and also appointed "Principal Officer" to take care of the company's compliance matters.

 

"Since, the noticee is the promoter and Principal Officer of a SEBI registered intermediary, he is vested with a higher responsibility to make timely disclosures and adhere to the various rules and regulations under the securities laws," SEBI said in its order.

 

SEBI said it is evident that there was a change in the shareholding of Pandey as he sold more than 25,000 shares of ASL on three occasions and also bought more than 25,000 shares of the company on four occasions.

 

As per regulators norms he was required to make the necessary disclosures regarding the change in shareholding pattern to the company and the stock exchange which he failed to do, SEBI said.

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Videocon approaches SEBI for Rs700 crore IPO of its D2H unit

The IPO would comprise at least 25% of equity capital giving a valuation of Rs2,800 crore to Bharat Business Channel, which provides direct-to-home TV services under Videocon D2H brand

Mumbai: Bharat Business Channel, satellite TV arm of Videocon Group, has filed its papers with market regulator Securities and Exchange Board of India (SEBI) to raise Rs700 crore through an initial public offering (IPO), reports PTI.

 

The company is also considering to raise Rs50 crore through a pre-IPO placement of its shares to institutional investors, it said in its draft prospectus made public by SEBI.

 

The issue would comprise at least 25% of equity capital giving a valuation of Rs2,800 crore to Bharat Business Channel, which provides direct-to-home TV services under Videocon D2H brand.

 

Other players in the business include Tata Sky, Dish TV, Sun Direct and Airtel Digital TV.

 

While the company has not disclosed the total number of shares to be sold in IPO, the pre-IPO placement could be of one crore shares.

 

"Our Company is considering a pre-IPO placement of up to one crore equity shares aggregating up to Rs500 million with certain investors...If the Pre-IPO placement is completed, the Issue size will be reduced to the extent of such Pre-IPO placement, subject to the issue size constituting at least 25% of the post-issue paid-up equity share capital of our company," the filing showed.

 

The company is planning to use the funds for "acquisition of set-top boxes, outdoor units and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes."

 

IDBI Capital Market Services Ltd, SBI Capital Markets Ltd, Yes Bank, Enam Securities and UBS Securities India would act as a book running lead managers to the issue.

 

The shares are proposed to be listed on the BSE.

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NSE asks brokers to implement risk-reduction mode

NSE said the stock broker would be moved back to the normal risk management mode as and when his  collateral is lower than 85% utilisation level

Mumbai: The National Stock Exchange has asked its trading members to compulsorily implement a risk reduction mode when 90% of their capital is utilised towards margins, following market regulator Securities and Exchange Board of India (SEBI)'s directive, reports PTI.

 

The move would be applicable for capital market and future & options segment. It would be effective from 24 December 2012, NSE said in a statement.

 

The stock broker would be moved back to the normal risk management mode as and when the collateral of the stock broker was lower than 85% utilisation level, NSE said.

 

SEBI last week asked bourses to ensure that the stock brokers mandatorily put in place "risk-reduction mode".

 

Under this mode, all unexecuted trades would be cancelled when 90% of the stock broker's collateral available for adjustment against margins gets utilised.

 

SEBI came out with stringent norms for bourses after a set of erroneous orders placed by brokerage Emkay Global on 5th October led to the Nifty crashing over 15% within a few minutes of opening.

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