The Hindu : Tamil Nadu News : New twist to TMB imbroglio

Online edition of India's National Newspaper
Saturday, May 31, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu

New twist to TMB imbroglio

Special Correspondent

CHENNAI: The board of Tamilnad Mercantile Bank (TMB) has decided not to permit voting rights on 24.92 per cent shares (70,906 shares) held by a few foreign and Indian investors. A decision to this effect was taken at a board meeting held on May 26.

Highly-placed sources said that the nominees of the Reserve Bank of India abstained from voting on this issue. The move, however, had the unanimous approval of the rest of the members, the sources said. The board had also decided not to permit the foreign and Indian investors concerned exercise any rights on these shares, more particularly voting rights at any annual general meeting, including the one to be held on June 5. Foreign investors include Katara Holdings Ltd., GHI Ltd., RST Ltd., Kamehameha Mauritius Ltd, Cuna Group (Mauritius) Ltd., FI Investments (Mauritius) Ltd. and Swiss Re Investors (Mauritius) Ltd. Major Indian investors include Gokul Patnaik and Vector Program.

Non-disclosure of links with the Katara Group by Gokul Patnaik and the alleged failure on the part of Vector Program Pvt. Ltd. to disclose its connection with the Katara Group at the time of share transfer was citied as the reasons by the board for disallowing these Indian investors from exercising the rights on their shares. The latest move has added a fresh twist to TMB imbroglio, which has seen the Nadar community fight the Essar Group first, C. Sivasankaran of the Sterling Group later and Ramesh Vangal-led Katara Group now.

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

Tamil Nadu