Search the Internet          Tips  Sites: Finance, Investment

Sebi seeks legal opinion on Sterlite buy-back

The Securities and Exchange Board of India has sought expert legal opinion on Sterlite Industries' alleged violation of SEBI norms.

Mumbai-based investors' organisation has strongly objected to Sterlite Industries' act of sending cheques in advance to its shareholders along-with the buy-back offer.

The investors' organisation termed it as an act of inducement and a violation of the norms.

When contacted, SEBI spokesperson confirmed that the capital market regulator has sought opinion from legal experts on the issue.

Investors' Grievances Forum president had raised questions over the company's buy-back offer to small investors and said the company had violated regulation 5 of the Fraudulent and Unfair Trade Practice Regulation of the SEBI.

There is also the allegation that the buyback price of Rs 150 per share is much below its book value of Rs 300 per share and violated provisions of the Companies Act and SEBI's regulation.

Sterlite, however, had claimed the scheme has been approved by the Bombay high court after obtaining the necessary no-objection from the Registrar of Companies, a statutory requirement.

UNI

ALSO READ:
The SEBI Story
More Money Headlines