Mumbai, Sep 30 (IANS) The Securities and Exchange Board of India (SEBI) has barred four individuals, including Yashovardhan Birla, the Chairman of Yash Birla Group, from the markets in relation to manipulation in issuance of global depository receipts (GDR) by Birla Cotsyn (India) Ltd way back in 2010.
Birla Cotsyn (India) Ltd (BCIL) is currently undergoing liquidation proceedings under the Insolvency and Bankruptcy Code (IBC).
The other individuals barred from the securities market are P.V.R. Murthy, Y.P. Trivedi and Mohandas Adige.
The SEBI had sent a show cause notice to the four of them and BCIL, alleging that BCIL issued 9.69 million GDRs, amounting to $24.99 million on March 15, 2010, equivalent to 96.89 crore equity shares of Rs 1 each and Vintag FZE was the only entity to have subscribed to them and the subscription amount was paid by obtaining a loan from EURAM Bank.
Further, the regulator said the pledge agreement was signed by Murthy, then a director of BCIL, who was authorised by a board resolution in December 2009. The company had also approved opening of a bank account with EURAM Bank for the purpose of receiving the GDR proceeds.
Birla, Trivedi and Adige had also attended that board meeting, as per the regulator.
SEBI restrained Yashovardhan Birla from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities, including units of mutual funds, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of two years from the date of this order.
“During the period of restraint, the existing holding of securities including units of mutual funds of the said Noticee shall also remain frozen,” the order said.
Last year, UCO Bank declared Yashovardhan Birla, also the Director of Birla Surya Ltd, as a wilful defaulter after the company failed to repay loans of Rs 67.65 crore.
Murthy has been barred for three years while Y.P. Trivedi and Mohandas Adige have been restrained for a year.
–IANS
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