Business

Tata Motors ignores with SEBI warning in old case

Tata Motors ignores with SEBI warning in old case

SEBI removed Tata Motors with a warning in an old case

New Delhi:

The Securities and Exchange Commission of India (SEBI) has abandoned Tata Motors Ltd with a warning to be “more careful” in its futures trades in the stock market, saying any adverse orders passed against the company during this period may not actually serve any purpose. for events that have accumulated over 18 years ago.

In addition to Tata Motors Ltd (TML), the market regulator has warned Niskalp Infrastructure Services, formerly known as Niskalp Investment and Trading Ltd, to exercise caution in future transactions.

The case involved a share transaction of Global Telesystems Limited (now GTL Ltd) and Global E-Commerce Services Ltd, an unlisted company that merged with GTL in 2001.

“With respect to events that have accumulated more than eighteen years ago, any adverse order passed against the TML at this stage, although legally enforceable, may in fact not serve any for any purpose because TFL (Tata Finance), the company that brought up the Rights Issue, was merged with TML 17 years ago effective June 24, 2005 and no longer exists, “Members SEBI full-time, SK Mohanty said in its 54-page order.

Furthermore, the regulator noted that TML’s current board of directors is radically different from all of TFL’s directors, all of whom are senior and long-retired members of the company’s board of directors. TFL and Niskalp.

“In view of the mitigating factors mentioned above and the fact that substantial and positive remedial measures have been actively taken by TML and Niskalp against the corrupt officials and issue registrants, The TFL rights issue has been given options twice to exit the aforementioned Rights Issue by the TFL if it wishes to do so, the end of justice will be met if Notices No. ) and 11 (Niskalp) are warned to be careful in their futures trades in the stock market,” SEBI said.

It is alleged that TFL concealed facts and correct facts from investors and disseminated false and misleading statements about the financial position of Niskalp, one of TFL’s subsidiaries, during letter of recommendation on the issue of his/her interests.

Furthermore, in order to show inflated and fictitious profits in Niskalp’s books, it was alleged that TFL knowingly engaged in practices that facilitated sales transactions and related accounting entries. regarding the scenario of GTL and GECS in Niskalp’s account books and thus in TFL’s offering document, to give a better picture of Niskalp’s accounts in TFL’s ‘offer letter’ to promote shareholders buy/register to issue rights to the TFL.

This order comes after SEBI received a complaint in October 2002 from Tata Finance alleging instances of unusual securities trading based on outdated and fictitious contract notes or invoices, to buy and sell shares of Global Telesystems Ltd and Global E-Commerce Services Ltd. by DS Pendse and AL Shilotri, who executed the transactions on behalf of Niskalp Investment and Trading Ltd (now known as Niskalp Infrastructure Services Ltd) and TFL, respectively.

Following the complaint, SEBI conducted an investigation into alleged out-of-date transactions in shares of GTL and GECS to determine possible violations of the provisions of the PFUTP (Prohibition of Fraud and Unfair Trade Practices).

(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)

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