Market regulator, Securities and Exchange Board of India, has lifted the ban on 100 entities associated with the promoters of Bank of Rajasthan, reports said.
In March 2010, SEBI had banned these entities from dealing in the securities market for allegedly violating several rules, which included takeover norms, and indulging in fraudulent trade practices.
According to SEBI, when promoters, the Tayals, had indicated that they were reducing their stake in Bank of Rajasthan from 44.71% to 28.61% to comply with an RBI directive, they had actually increased their stake to 55%.
Prashant Saran, Whole-time Member, SEBI, in his order said, “I am of the opinion that such an offence would have been considered as very serious or fatal if the wrongful disclosures would have led genuine investors into trades that would eventually expose them to much greater risk.”
“I have noted that there is no allegation as to any price or volume manipulation by the promoters. Therefore, I am of the opinion that purely from a securities market point of view, the severity of the offence could be considered not very grave,” he added.
Further he said in his order: “There is no allegation that the entities indulged in any other kind of manipulation in the securities market. Therefore, it would be reasonable to assume that on the basis of the material available on record, there is no indication of a likelihood that the entities shall indulge again in wrongful disclosures of their holdings of which they have been charged with in the first place.”
By ANAND PRAKASH (PGDM 2nd SEM)