The Hindu : HSBC Securities not acted negligently in Modi Rubber open offer

Online edition of India's National Newspaper
Thursday, Dec 11, 2003

Business

Business

HSBC Securities not acted negligently in Modi Rubber open offer — SEBI

MUMBAI DEC. 10. The Securities and Exchange Board of India (SEBI) has ruled that HSBC Securities and Capital Market (India) Pvt. Ltd. has not acted negligently to warrant imposition of penalty while acting as a merchant banker for an open offer made by V. K. Modi and others to acquire 35 per cent stake in Modi Rubber Ltd (MRL).

"There is no denying the fact that this is an exceptional case, riddled with complications of litigations. Based on totality of consideration of the given facts and peculiarity of circumstances of the case and the conduct of the merchant banker in navigating the public offer (made in June 2001), it would be but reasonable to conclude that HSBC Securities, as a merchant banker, has not acted negligently," SEBI wholetime member, T. M. Nagarajan, said in his order. HSBC Securities has kept the regulator informed of significant developments in the case from time to time. In the final report submitted to SEBI on September 27, 2001, it had mentioned that the balance amount of Rs. 2.09 crores under the escrow account would be returned to acquirers on completion of the formalities, he said.

The shares tendered in the offer were 1.08 crore, including 27.04 lakh shares by LIC.

On July 21, 2001, LIC wrote to HSBC Securities and Karvy (registrar to the Issue) to return the shares tendered by it but HSBC Securities on July 23 replied that once shares tendered cannot be returned.

PTI

Printer friendly page
Send this article to Friends by E-Mail

Business