SEBI drops cases against two individuals in Bank of Rajasthan case
MDT/PTI 16 October 2012

In two separate orders, SEBI said it is disposing of the case against Subhashchandra Maheshwari and Manishbhai Mistry as the charges of violations of various norms by the two entities "do not stand established"

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has dropped cases against two individuals in relation to a probe into the affairs of erstwhile Bank of Rajasthan (BoR) for alleged irregularities on part of the company's former promoters, reports PTI.
 
In two separate orders, SEBI said it is disposing of the case against Subhashchandra Maheshwari and Manishbhai Mistry as the charges of violations of various norms by the two entities "do not stand established".
 
The regulator said after taking into consideration all the facts and circumstances of the case, it did not find the case fit to impose a monetary penalty. "The case is accordingly disposed of," SEBI said in similarly-worded orders dated 12 October 2012.
 
Both Maheshwari and Mistry had served as directors of Megna Developers and Praneta Properties, companies alleged to be persons acting in concert (PAC) entity of BoR's former promoters.
 
SEBI had alleged that the two had violated various sections of the SEBI Act and the regulations for prohibition of fraudulent and unfair trade practices which made them liable for monetary penalty.
 
The matter relates to SEBI's investigation into the affairs of BoR for a period between June 2007 and December 2009. Later, BoR was acquired by ICICI Bank.
 
During the period, it was found that the shareholding of the promoters of BoR led by Pravin Kumar Tayal with their PACs had increased from 46.80% in June 2007 to 63.15% in December 2009.
 
The bank's promoters along with their PACs had increased their shareholdings by way of acquiring shares from the market.
 
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