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Sebi to finish probe in L&T before Grasim offer

Securities and Exchange Board of India is expected to complete investigations into alleged insider trading in Larsen and Toubro stock before Grasim Industries Ltd's offer to acquire additional 20 per cent stake in the company opening on December nine, 2002.

"We will expedite investigations into insider trading in L&T case (launched in January 2002)," Sebi chairman G N Bajpai told reporters in an "informal interaction" in Mumbai on Friday.

"We will ensure the concerned parties adhere to all legal requirements," he stressed.

The probe involves sale of Reliance Industries Ltd's 10 per cent stake in L&T to Aditya Birla group flagship Grasim at Rs 306.66 per share in November 2001.

Grasim, which holds 15.35 per cent stake in L&T with two nominee directors on its board, has now made open offer at Rs 190 per share.

Bajpai said the market regulator was also examining the Investors Grievances Forum's plea seeking a stay on the operation of Grasim's open offer.

Meanwhile, in a separate press conference Grasim chief financial officer D D Rathi said, "Sebi has not approached us as of yet over the IGF complaint and we have no information regarding its nature".

He said the company plans to continue with its open market purchases of L&T shares.

Rathi said: "We have not had any discussions or communications from the financial institutions. We feel that since we are entitled to make an open offer, we have done it...it is the FIs prerogative to subscribe for the same or not".

Grasim wanted to strengthen its holding in L&T and hence this offer. Representation on the board is purely L&T board's decision, he added.

When asked whether Grasim would revise its open offer price, Rathi said he will not be able to comment on the issue and there was no such proposal with Grasim board.

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