SEBI slapped a fine of Rs2 lakh on one Dimple Shah and another Rs3 lakh on Piyush Shah for manipulative and deceptive trading which led to creation of artificial demand and a false appearance of trading in the shares of BGSL
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a total penalty of Rs5 lakh on two individuals for alleged fraudulent trade practices in shares of Betala Global Securities Ltd (BGSL), reports PTI.
In two separate orders, SEBI slapped a fine of Rs2 lakh on one Dimple Shah and another Rs3 lakh on Piyush Shah for manipulative and deceptive trading which led to creation of artificial demand and a false appearance of trading in the shares of BGSL.
"I am of the view that the facts of the present case clearly bring out an element of fraud and unfair trade practices indulged in by the noticee through brokers in connivance with other entities of Mahesh Mistry Group," SEBI's adjudicating officer PK Kuriachen said in similarly-worded orders.
In a probe conducted by SEBI, the regulator found a spurt in the share price of BGSL during 2nd May to 21 November 2003. The regulator said the company's scrip price jumped by 254% and a total of 1.54 crore shares were traded.
SEBI said a group of clients connected to each other and collectively referred to as 'Mahesh Mistry Group' traded in the shares of the BGSL. Both Dimple Shah and Piyush Shah were found to be part of the group.
Dimple Shah had acquired 54,300 shares valued at Rs26.60 lakh and sold a total of 7,910 shares for Rs7.33 lakh of the company, SEBI said.
On the other hand, Piyush Shah bought 5.32 lakh shares for Rs4.24 crore and sold 6.82 lakh shares for Rs5.67 crore.
The RINL issue has already been deferred thrice since the filing of the draft prospectus with market regulator SEBI on 18th May last year
New Delhi: State-run Rashtriya Ispat Nigam's (RINL) Rs2,500-crore initial public offer (IPO) is unlikely to hit the market in current fiscal as it has to start the process anew following expiry of the offer document filed with Securities and Exchange Board of India (SEBI), reports PTI.
"The company had filed red herring prospectus with SEBI on 8th October hoping to launch the IPO on 16th October. Now, it has gone past three months and with this, it has lost validity. This calls for submission of documents afresh which take some time," a Steel Ministry official said.
"Taking the time required for RINL to file offer document into consideration, it is unlikely that the issue will be launched within the current fiscal," he added.
The RINL issue has already been deferred thrice since the filing of the draft prospectus with market regulator SEBI on 18th May last year.
First, it was put on hold as a result of volatile market conditions and then due to a major explosion, which took place during the trial of a new oxygen control unit near the steel melting shop at Vizag Steel Plant (VSP).
Finally, in October last year, it was deferred following disagreements on the pricing of issue with merchant bankers.
The issue was supposed to kick-start the government's Rs30,000 crore disinvestment process for the current fiscal that has mopped up a little over Rs6,900 crore so far. Ten PSUs that include Oil India, NTPC, Bhel and SAIL are on the list of the government's disinvestment programme.
RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Visakhapatnam. The capacity is being raised to 6.3 mtpa in the current fiscal.
The Cabinet Committee on Economic Affairs in January had approved disinvestment of 10% of governments 100% stake in the firm.
Separately, the Bombay High Court has deferred hearing on a case filed by SEBI against a CIC order that asked the regulator to disclose details of an insider-trading case involving Reliance Petroleum, prior to its merger with Reliance Industries
Mumbai: The Securities Appellate Tribunal (SAT) has postponed hearing to 21st February on the petition filed by Reliance Industries Ltd (RIL) against market regulator Securities and Exchange Board of India (SEBI)'s rejection of its plea for consent settlement, reports PTI.
Earlier SAT had adjourned the case to 24th January, after the regulator sought more time to prepare its defence.
When contacted, an RIL official also said the hearing has been postponed to 21st February.
At the last SAT hearing on 11th January, SEBI lawyer Shiraz Rustomjee had said that the regulator had received the RIL petition only on 10th January and that it did not get time to study the same.
The SAT is being presided over by member PK Malhotra.
Meanwhile, the Bombay High Court has deferred hearing on a case filed by SEBI against a Central Information Commission (CIC) order that asked the regulator to disclose the details of an insider-trading case involving Reliance Petroleum prior to its merger with Reliance Industries.
A division bench of Justices SZ Vajifdar and Mridula Bhatkar was informed that Reliance had already moved the Delhi High Court challenging the CIC order which is slated for hearing on 30th January.
The Delhi High Court had earlier granted interim stay on the order. Following this, the Bombay High Court adjourned hearing into SEBI's petition till 21st February.
At the last SAT hearing, Rustomjee had also challenged the maintainability of the RIL petition, saying it was a non-starter and that under the consent procedure, appeals were not contemplated and therefore, the tribunal should decide whether to admit the petition at all.
Janak Dwarkadas, representing RIL, had said his client had to go into an appeal as it felt that SEBI had acted in a discriminatory manner in the case.
Reliance Industries had sought to settle certain investigations into alleged violation of insider-trading norms in sale of shares of its erstwhile subsidiary Reliance Petroleum in 2007, but the application to settle the matter under SEBI's consent framework was rejected by SEBI.
Consequently, RIL filed an appeal before the SAT.
RIL's appeal against SEBI was earlier scheduled to be heard by SAT on 4th January, but was adjourned to 11th January.
RIL is believed to have challenged SEBI's decision to reject its application and also the recent changes made by SEBI in the regulations governing settlement of cases through the consent mechanism--especially for cases already under consideration.
Under SEBI's consent mechanism, companies can seek to settle cases with the market regulator after payment of certain charges and disgorgement of any ill-gotten gains.
In May 2012, SEBI tightened the regulations for settlement through consent framework, as a result of which many cases including those related to insider-trading, cannot be settled through this mechanism.
On 3rd January, SEBI published a list of 149 consent pleas, including 16 from entities related to RIL group, which it had found unsuitable for settlement through consent process. These include applications of RIL itself and that of RIL Chairman Mukesh Ambani's close aide Manoj Modi.