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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