SEBI's HPAC Meet On Consent Guidelines
Published on Fri, Jun 01 20:50, Updated at Mon, Jun 04 at 20:20
Source : Moneycontrol.com | Watch Video :
SEBI's High Powered Advisory Committee or HPAC on consent orders met today. Remember, last week, SEBI had released new guidelines for consent mechanism. The HPCA met to decide what happens to the existing cases.
CNBC-TV18's Payaswini Upadhyay reports.
SEBI's High Powered committee met today and they've recommended that all the cases where application of consent has been already been received from the applicant will come under the old guidelines. Now to give you a sense, there are about 20 such cases that are pending before SEBI's internal committee as of now.
The High Powered Committee looked at several consent applications that have already been reviewed by SEBI's Internal Committee. This includes the consent application of India Infoline - the major charges against the brokerage firm being execution of trades in client's account without their instruction and not displaying the order details in the contract note. Now the High powered committee has said that India Infoline's case is not consentable.
Another application the committee looked at was of the promoter and promoter group of Tips industries. The charge against the promoters ie Renu Taurani, Varsha Taurani and Ramesh Taurani is that they violated Regulation 11(2) of the Takeover Code by not making a public announcement for acquisition of 0.1% of the equity shares of Tips Industries - this acquisition was over and above the original holding of 57.66%. The Committee said that the violation is too grave to be settled under the consent process and has rejected the application.
Lastly, the High powered committee also said that the HSBC case of alleged circular trading in Adani group stocks is not consentable. Sources tell us that SEBI's Internal Committee had already rejected HSBC's consent application earlier.