• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Aug. 14 Eight entities, including a foreign institutional investor and two of its sub-accounts, have agreed to pay nearly Rs 12 crore as settlement charges under consent orders relating to trading irregularities in shares of Nissan Copper Ltd. This is the largest amount agreed to be paid under consent terms and arguably the first involving an FII and sub-accounts, said sources.

Five entities belonging to the Reniwal group have agreed to pay Rs 9.53 crore as settlement charges, while Venus Capital Management Inc (the FIIs) and two of its sub-accounts have agreed to pay Rs 2.36 crore plus interest accrued, said a statement from the SEBI.

Persons accused under securities laws by the SEBI can file applications for consent terms seeking to co-operate with the regulator and agree to settle the cases against them by making a payment. SEBI had launched an investigation into dealings on the first date of listing of shares of NCL. It had passed an ad-interim ex-parte order in January 2007 directing the BSE and NSE to withhold the profits/gains made by the above-named entities in a separate escrow account.

Based on the investigations, it was alleged that subscription from the FII in the qualified institutional buyer portion of the IPO was pre-arranged. The FII and its sub accounts were assured exit on the first day of listing through structured transactions, and this appeared to have distorted the market prices, which the accused benefited from, said SEBI. SEBI had issued a showcase notice in November last year and proceedings were pending against the entities. In January, the applicants proposed settlement of the proceedings through a consent order, which they have now obtained.

More Stories on : Economic Offences | Foreign Institutional Investors | Financial Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line