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Stock market regulator SEBI disposed of adjudication proceedings against Dena Bank in the Alka Securities case by a consent order issued on Tuesday.
SEBI found Dena Bank transacting substantially in the shares of Alka Securities during the period September 2008 and July 2009 based on sudden spurt in price, trading volumes and off market transfers. Though the bank sold large quantities in the scrip they failed to make mandatory disclosures under SEBI's Prohibition of Insider Trading regulations.
SEBI observed that Dena Bank held 27.36 per cent stake (1,36,81,830 shares) in the company as on September 4 2008 and sold its entire stake by November 4, 2008. Dena Bank put forward an application for consent order on September 17, 2010, when adjudication proceedings in this case were going on.
The revised consent terms proposed by the Bank quoted Rs 10 lakh towards settlement charges on December 22, 2010. The High Power Advisory Committee constituted by SEBI recommended the case for settlement on payment of Rs 10 lakh on March 14, which was communicated to the Bank by SEBI on April 15.
Dena Bank remitted Rs 10 lakh without admission or denial of guilt, and SEBI disposed of the adjudication proceedings against Dena Bank with immediate effect on Tuesday.
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