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Sebi has not taken any action against a Calcutta firm: Sinha

The Securities and Exchange Board of India has not taken any action against a Calcutta-based firm following complaints of cheating, Union Finance Minister Yashwant Sinha informed the Rajya Sabha on Tuesday.

Responding to supplementaries during question hour, he said Sebi had intimated that they had neither taken any action nor were contemplating to do so against Binani Zinc Limited, Calcutta, which had entered the capital market in 1991.

He said Sebi had intimated that they had received complaints regarding rise in the price of the scrip in 1995.

The price rise was observed during August 1994-March 1995.

Sinha said the matter was referred to the stock exchanges as it was stated that the rise in the price of the scrip was due to the lack of floating stock of the company in terms of number of shares.

However, as alleged in the complaint, there was no indication that the company had held the shares received from the shareholders for subdivision for unduly long period, except in very few cases which was due to procedural delay, he said.

"Sebi did not find any unfair practice to take action against the company," the minister said.

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