Sebi for govt action on RIL share issue
Mumbai: Market regulator Sebi has asked the government to consider appropriate action against RIL for allegedly routing funds to dummy companies for buying large quantity of its shares in 2000. Based on retired Justice B N Srikrishna's opinion on the issue after its own investigation, Sebi in a communication to the corporate affairs ministry earlier this month said the matters of "irregular issue of privately placed debenture (PPD) IV and V by RIL" are being referred for "consideration and appropriate action." "Justice Srikrishna has also opined that the manner, in which RIL has managed to fund the buying of its own securities, is really a matter for action by the authorities enforcing the provisions of the Companies Act viz. MCA," the communication said. While no response could be obtained from the ministry, Sebi officials declined to comment. A RIL spokesperson refused to comment on the issue. The Sebi probe relates to a complaint by S Gurumurthy, alleging that the core of the fraud was the criminal misappropriation amounting to virtual smuggling out of RIL (through non convertible debentures) of 12 crore shares of the company in 2000 representing 11.38% of equity capital. This, according to the complaint, had caused loss of at least Rs 2,700 crore to RIL and its investors. The complainant had alleged that while shares (on conversion of warrants) were issued to UTI at Rs 401 a piece, 34 dummy companies received them at Rs 75 per share. The matter referred to allotment of 12 crore equity shares at a price of Rs 75 each on conversion of warrants attached with non-convertible debentures aggregating Rs 300 crore during 2000. Justice Srikrishna has opined that the "evidence suggests that there was a scheme to route the money from RIL and RPL to the 34 private companies to enable them to subscribe to shares on conversion of PPD IV." PTI -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
