The Hindu Business Line : SEBI told to process Gammon Infra prospectus

Kolkata March 28 The Securities Appellate Tribunal (SAT) has admitted the appeal of Gammon Infrastructure Projects Ltd (GIPL), a subsidiary of Gammon India, and passed an interim order directing SEBI to process GIPL's draft red herring prospectus.

This follows an appeal filed by GIPL against the securities regulator's order passed in December last year, which denied the company access to the capital market for a one-year period.

The SEBI order had pertained to, inter alia, Gammon India, Devyani Estates and Properties Pvt Ltd, Nikita Estate Developers Pvt Ltd and Reliance Silicones India Pvt Ltd.

The Gammon India stock closed at Rs 300.30 on March 28 after touching the day's high of Rs 315.20 on the BSE aganst Monday's close of Rs 301.45.

In the order, Mr G. Anantharaman, Whole-Time Member of the SEBI, had prohibited these entities from divesting, transferring, selling or alienating in any manner of their stake in GIPL for a certain period from the date of allotment of shares in the public issue of GIPL.

It was also directed that Reliance Silicones shall not access the capital market directly or indirectly for period of one year.

The order was passed against these entities for violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, read with Section 77 of the Companies Act, 1956 observed to have been committed by these entities in the matter of rights issue of Gammon India in 2001.

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