The Hindu Business Line : SEBI debars Lalbhai group co from market for two years

ASMAN Investments Ltd, a Lalbhai group company, has been debarred from the capital markets for a period of two years. The Securities and Exchange Board of India (SEBI) has found the Lalbhai group guilty of flouting the takeover regulation with regard to the acquisition of shares of Hitachi Home and Life Solutions India Ltd (Target Company).

The report noted that the actions of Lalbhai group, is not only in violation of the provisions of the Takeover Regulations but also reflects a tendency on the part of the promoters to exit, at an opportune time, leaving the public shareholders, particularly small ones in the lurch.

"It is observed that Lalbhai group, the original promoters of Hitachi were in sole control of the company till 1998 and subsequently shared control with the Hitachi group, had exited from the target company by off loading its entire share holding at a higher than the market price to Hitachi group at a time when the company was falling into sickness, leaving the public shareholders aggrieved," stated the report.

Lalbhai group was also found to have flouted the regulation and acquired nearly 10 per cent of the stake in the target company, even though they were aware that the limit was to be lowered to five per cent, according to the report.

The rule will be in effect immediately, according to Mr T.M. Nagarajan, Whole Time Member, SEBI.

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SEBI debars Lalbhai group co from market for two years