Balkrishna Industries: Investors Have Very High Hopes
Balkrishna Industries Ltd (BIL) manufactures tyres used in vehicles meant for agriculture, industry, construction, earthmoving, mining, port, lawn & garden and all-terrain vehicles (ATVs), etc. This segment is highly technical and capital-intensive and known as ‘large varieties, low volume segment’. Any player in this business needs to maintain large number of stock keeping units (SKUs) to...
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  • Kirloskar Brothers' Promoters, Directors Found Guilty of Insider Trading
    The Securities and Exchange Board of India (SEBI) has found that the promoters and directors of Kirloskar Brothers Ltd (KBL) had violated norms on prohibition of insider trading as they traded in the scrip of KBL while in possession of unpublished price-sensitive information and made wrongful gains by avoiding losses.
     
    Further, the promoters and directors had also submitted an incorrect undertaking or declaration to the company.
     
    In three separate orders in the matter, the capital markets regulator said that it had received various complaints alleging insider trading and bad corporate governance practices in KBL.
     
    On the basis of the complaint, the SEBI conducted investigation during the period from 1 March 2010 to 30 April 2011 and examined the matter relating to dealings in the scrip of KBL. It then ascertained possible violation of norms for prohibition insider trading and prohibition of fraudulent and unfair trade practices.
     
    Promoters Alpana R Kirloskar, Arti Atul Kirloskar, Jyotsna Gautam Kulkarni, Rahul Chandrakant Kirloskar and Atul Chandrakant Kirloskar, along with others, have been asked to pay over Rs31.21 crore in total, which includes both penalty and digorgement. SEBI had sent show cause notices to them in December last year.
     
    Reacting to the development, a spokesperson for the Kirloskar family rejected any suggestion of wrongdoing and added that they plan to appeal against the ruling shortly.
     
    "SEBI has today issued a ruling against certain promoters and directors of KIL, in relation to their sale of shares in Kirloskar Brothers, in 2010. Mr Atul Kirloskar and Mr Rahul Kirloskar reject any suggestion of wrongdoing and maintain that the share sale reflected all appropriate stock exchange disclosures and necessary regulatory pre-clearances at the time," the spokesperson said.
     
    "We are currently reviewing SEBI's order and seeking appropriate legal advice. We remain confident of our position and plan to appeal the ruling shortly," he added.
     
    In a separate order in the matter, the SEBI asked Sanjay Kirloskar, the Trustee of Kirloskar Brothers Ltd Employees Welfare Trust Scheme, Pratima Sanjay Kirloskar, Prakar Investments Pvt Ltd, Karad Projects and Motors Ltd to pay a total of over Rs42.77 lakh, including penalty and disgorgement.
     
    The regulator has also barred all the noticees from buying, selling deal in shares in any manner whatsoever for a period of three months.
     
    In another order, the SEBI said that as per the the complaint, six individual promoter entities of KBL had together sold 1,07,18,400 number of shares to Kirloskar Industries Ltd (KIL), the promoter entity of KBL, on 6 October 2010, and this inter se transfer of shares of KBL among these promoters of the company through block deal on stock exchange mechanism was to take advantage of price sensitive information that they were privy to.
     
    The investigation found that as per the Equity Listing Agreement, inter alia, the company is required to immediately inform the exchange of all events, which will have bearing on the performance/operations of the company as well as price sensitive information.
     
    The decision to acquire shares of KBL from the promoters amounting to upto Rs275 crore, was a material and price-sensitive information for the shareholders of the company, it said.
     
    "The subject decision which had a bearing on the performance/operations of KIL warranted a disclosure to the stock exchanges as soon as the decision was taken by the KIL Board. However, the same was not disclosed to the stock exchanges by KIL," it said.
     
    Kirloskar Industries Ltd has been asked to pay a penalty of Rs5 lakh.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    User 

    COMMENTS

    komalhema4

    1 month ago

    Suit boot thieves loot shareholders ,banks, evade taxes and pay a small amount to political party as protection money against criminal action .Honest tax payer has to bear this burden by way of increasing taxes.

    Newme

    1 month ago

    10 years for a judgement? What about the time value of money.

    ssbh.dceo

    1 month ago

    JUSTICE DELAYED IS, JUSTICE DONE?

    Nifty, Sensex continues to trend up – Wednesday closing report
    We had mentioned in Tuesday’s closing report that Nifty, Sensex were still in the grips of bulls. On Wednesday, the major indices opened high, faced a correction of more than 1.5% in the afternoon but recovered quickly and closed with minor gains. On the NSE, there were 933 advances, 923 declines and 123 unchanged.
     
    The trends of the major indices in the course of Wednesday’s trading are given in the table below:
     
     
    Bajaj Finance reported a 36% YoY decline in consolidated profit for September 2020 quarter due to elevated provisions. Profit fell to Rs 965 crore during the quarter, down from Rs 1,506 crore in same period last year. Consolidated net interest income increased 4% YoY to Rs 4,165 crore.
     
    UltraTech Cement consolidated net profit surged 113% YoY at Rs 1,235 crore against Rs 579 crore. Revenue was up 7.7% YoY at Rs 10,354 crore against Rs 9,615 crore.
     
    Hindustan Zinc reported a 6.7% YoY drop in net profit to Rs 1,940 crore for the quarter ended on September 30, 2020, due to high expenses. Total income increased to Rs 6,050 crore from Rs 5,101 crore in the year-ago period. It announced a dividend of Rs 21.30 per share.
     
    Colgate Palmolive’s consolidated net profit rose 12.3% YoY to Rs 274.2 crore from Rs 244.1 crore in the year ago period. Revenue was up 5.2% YoY at Rs 1,286 crore against Rs 1,222 crore in the previous year.
     
    Sebi pulled up Prabhat Dairy for not cooperating with the forensic auditor and asked it to deposit Rs 1,292 crore in a nationalised bank within seven days till the conclusion of the audit. The stock also witnessed spurt in volume by more than 3.79 times.
     
    DB Corp’s consolidated net profit fell 63% YoY at Rs 28.5 crore against Rs 75.6 crore. Its revenue was down 34.8% YoY at Rs 346.4 crore against Rs 531.4 crore in the previous year.
     
    Alembic Pharma received US FDA nod for Fenofibrate Capsules used along with a proper diet to help lower ‘Bad’ cholesterol and fats.
     
    DLF's rental arm pre-leased 7.7 lakh sq ft office space to Standard Chartered GBS in an upcoming commercial tower in Chennai to be constructed at a cost of around Rs 450 crore.
     
    The top gainers and top losers of the major indices are given in the table below:
     
     
    The closing values of the major Asian indices are given in the table below:
     
  • User 

    COMMENTS

    ganesanjaicare

    1 month ago

    mentioned again the tuesday trade.rectify the error.and mention today trade

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