SEBI said it found that the stock broker, Triveni Management Consultancy, had placed manipulative orders for Asian Star Company shares in the accounts of its clients
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs25 lakh on Triveni Management Consultancy Services for fraudulent trade in Asian Star Company Ltd (ASCL) stock and failing to comply with norms for stock brokers, reports PTI.
The regulator said it found that the stock broker had placed manipulative orders for ASCL shares in the accounts of its clients.
"Gains per se were made by the noticee (Triveni) in that it executed trades in the scrip in a manner meant to create artificial volumes and liquidity which is an important criterion, apart from price, capable of misleading the investors while making an investment decision," SEBI said in an order issued on Thursday, slapping a penalty of Rs25 lakh.
SEBI noticed a spurt of about 19% in the price of ASCL shares between 10th October and 20 November 2008. During this period, the BSE 30-stock index, Sensex, had dropped over 19%.
The market regulator observed that certain entities connected to each other had indulged in circular/reversal synchronised trading in a manner that led to creation of artificial volume in the scrips.
These entities are collectively referred to as the "Mehta Group" by SEBI.
Recently, in a separate order, SEBI had penalised one Sunil Mehta as being the main conspirator behind the manipulative trades in ASCL shares.
Besides charging Triveni for aiding and abetting Mehta, the regulator also found that it funded the transactions of Mehta Group and failed to abide by the code of conduct for stock brokers.
The broker was also noted to be the largest contributor to the volumes to the scrips.
The Finance Ministry has also urged SEBI to extend the time for accepting bids by the stock exchanges to 1730 hrs from 1530 hrs during the auction process
New Delhi: The Finance Ministry has written to market regulator Securities and Exchange Board of India (SEBI) to do away with the 25% margin money requirement for institutions bidding during the PSU stake sale through auction route, reports PTI.
The Ministry, according to official sources, has also urged SEBI to extend the time for accepting bids by the stock exchanges to 1730 hrs from 1530 hrs during the auction process.
These suggestions, they added, will help generate more demand during the stake sale process as investors won't have to worry about providing funds upfront for making bids.
"We have written to SEBI to abolish margin money, at least for institutional investors. It will help in generating better response for PSU shares," the official said, adding that as these are off-market deals they need not be restricted to equity market timings. Trading in equity markets happen between 0900-1530 hrs.
"We have asked them to extend the time for share sale to 1730 hrs. Also, we have suggested that the OFS (offer for sale) process can begin around 1200 hrs, instead of 0900 hrs, as this is an off-market deal" he added.
As per the existing norms, institutional investors have the option of submitting bids with 25% margin money under the OFS or auction route.
Last week, the government raised Rs6,000 crore through 10% stake sale in NMDC. The issue got over-subscribed 1.73 times, with majority of the bids coming in from institutional investors.
The OFS of Hindustan Copper in October had generated demands worth 1.4 times the shares on offer, while ONGC share sale in March barely managed to get fully subscribed.
In the current fiscal, the government has fixed a target of raising Rs30,000 crore from stake sale in PSUs. So far this fiscal, it has raised over Rs6,900 crore.
The 17-member SEBI Committee on Disclosures and Accounting Standards is now chaired by Tata Sons' Director-Finance Ishaat Hussain, while members include NSE chief Ravi Narain, HDFC AMC Managing Director Milind Barve, Bombay Shareholders' Association's AK Bakliwal and IT major Wipro's CFO and Executive Director Suresh Senapathy
New Delhi: Markets regulator Securities and Exchange Board of India (SEBI) has revamped its expert committee on disclosure and accounting standards, which is mandated to suggest ways for improving disclosure framework for listed companies and accounting practices of various market entities, reports PTI.
The SEBI Committee on Disclosures and Accounting Standards (SCODA) was originally set up in 2006 under the chairmanship of noted chartered accountant YH Malegam to advise the market regulator on disclosure requirements by companies at listing time and thereafter, as also about the accounting standards to be followed by various intermediaries.
The 17-member panel is now chaired by Tata Sons' Director-Finance Ishaat Hussain, while members include NSE chief Ravi Narain, HDFC AMC Managing Director Milind Barve, Bombay Shareholders' Association's AK Bakliwal and IT major Wipro's CFO and Executive Director Suresh Senapathy.
Besides, the panel also comprises representatives from SEBI itself and from the Finance and Corporate Affairs ministries, as also senior executives of Kotak Mahindra, SBI Capital Markets, Jubilant Life Sciences, M&M and Deloitte Haskins and Sells, as per a new notification from SEBI.
Other members are ICAI Governing Council Member CA Nilesh Vikamsey, International Management Institute Director Asish Bhattacharya and KP Saidharan from the Comptroller & Auditor General of India.
One of the major terms of reference of this committee is to advise SEBI on issues related to disclosure requirements in the offer documents, application forms, advertisements and other mode of mass communication by the issuers.
Besides, the SCODA also advises SEBI on issues related to the continuous disclosure requirements pertaining to listing of equity or debt of an issuer and on matters related to disclosure requirements of various market intermediaries.
It will also advise SEBI on issues for addressing the operational and systemic risks, if any, in primary market.
Its terms of reference also include ensuring "smooth implementation of accounting standards, statements, guidance notes and studies evolved by the Institute of Chartered Accountants of India (ICAI) to the extent that it pertains to disclosures in the Capital Market documents and for disclosures related to Intermediaries."
Besides, it would suggest how best to coordinate between SEBI and ICAI, such as by constituting study teams for providing inputs to Accounting Standards Board of ICAI and Making references to ICAI for consideration of ASB and Capital Markets Committee and for providing inputs to ICAI for evolving new accounting standards and reviewing the existing accounting standards.