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Tuesday, April 2, 2019

Himachal Futuristic Communications settles GDR manipulation probe with Sebi, pays Rs 1.14 crore The regulator had initiated adjudication proceeding against the firm in June 2018.


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New Delhi: Himachal Futuristic Communications has settled a probe with Sebi in a matter related to alleged manipulation in issuance of global depository receipts (GDR) after paying Rs 1.14 crore as settlement charge. 

The regulator had initiated adjudication proceeding against the firm in June 2018. 

The firm had issued GDRs of around USD 50 million in September 2002. Out of this, GDRs worth USD 46.5 million were subscribed by only one entity, Roker Securities Inc.,upon securing a loan from Lisbon-based bank Banco Efisa. 



It is alleged the firm had pledged GDR proceeds to the bank against the loan given to Roker for subscription to GDR issue and later GDR proceeds were repatriated to the firm's Indian bank account on repayment of loan by Roker. 

It is also alleged that the applicant signed an account charge agreement with Banco and did not inform stock exchanges about the fraudulent agreement. 

Moreover, allegedly the corporate announcements made by the firm to NSE contained misleading information which might have influenced decision of investors, Sebi noted. However, the firm filed a settlement application without admitting or denying the guilt and proposed the settlement terms with the internal committee of Sebi in December 2018. 

The terms were then approved by the high powered advisory committee of Sebi which recommended the application for settlement upon payment of Rs 1.14 crore. 

The settlement charges after approval of the panel of whole-time members of Sebi was remitted by the firm on March 27, 2019. 

Accordingly, the has been disposed of. 

In separate orders, Coastal Corporation and 12 individuals, including the promoters of the firm, settled a case with Sebi related to alleged violation of Substantial Acquisition of Shares and Takeovers (SAST) norms after paying a total amount of over Rs 41.07 lakh towards settlement charges. 

"The proposed adjudication proceedings for the alleged default .... are settled qua the applicant," Sebi said in orders dated Mar 29. 




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