Financial Daily from THE HINDU group of publications
Saturday, Dec 04, 2004
Financial Daily from THE HINDU group of publications Saturday, Dec 04, 2004 |
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Private Banks Money & Banking - Mergers & Acquisitions Markets - Stocks `SEBI probe reveals no insider trading in GTB shares before merger' Our Bureau
New Delhi , Dec. 3 THE Finance Minister, Mr P. Chidambaram, has said that a probe by the Securities Exchange Board of India has found that there was no insider trading in the shares of erstwhile Global Trust Bank during the process of its merger with Oriental Bank of Commerce. In a written reply to the Lok Sabha, Mr Chidambaram said the enquiry revealed that two overseas corporate bodies based in Mauritius - Far East Investment Corporation Ltd and European Investment Ltd - started selling their shares of GTB from June 17, five days after they became eligible to trade in the shares. A total of 95 lakh shares were sold by the two entities up to July 19. "Analysis of data and information on GTB scrip does not suggest that the sales by the persons concerned were based on any information about the likely announcement of moratorium by Government and RBI or the likely swap ratio and there is no evidence to suggest that they were in possession of price-sensitive information," the Finance Minister said. SEBI had found that during the pre-moratorium period, the purchasers of GTB shares were widespread and no concentrated purchases could be observed except by two clients - Mr Suman Goyal of Ludhiana and Mr Ramji Mehrotra of Kanpur. Mr Goyal purchased 5.99 lakh shares while Mr Mehrotra bought 5.75 lakh shares. "The analysis did not reveal any common set of purchasers and sellers during the period," Mr Chidambaram said. He further said that during the post-moratorium period, the purchasers and sellers were also widespread and no concentrated purchases could be observed with a few exceptions. "No adverse findings could be observed on the above transactions," he said. It had been alleged by two MPs, Mr Chander Kumar and Mr Gurudas Dasgupta, that insider trading by GTB shares had led to a loss of Rs 36 crore to 20,000-odd small investors.
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