The Chairman of Securities and Exchange Board of India (SEBI), Ajay Tyagi, on Wednesday said the regulator is examining the complaint of a whistle blower against Sun Pharmaceutical Industries Ltd.
The whistleblower had approached the Sebi with a document alleging various irregularities by the company, its promoter Dilip Shanghvi and others.
“At this point all I would like to say is that we are examining the allegations of the whistleblower,” said Tyagi.
Sebi Whole-Time Member Anant Barua said that the case pertaining to ICICI Bank, its former CEO Chanda Kochhar on alleged lapses in disclosure concerning dealings between the bank and Videocon Group and certain dealings allegedly between Videocon Group and NuPower Renewables is “pending before the adjudicating officer”. Barua said that the bank is yet to file an application under its consent mechanism to settle the case. Sebi had issued the notices to ICICI Bank and Chanda Kochhar on May 24, 2018 under Rule 4(1) of SCR (Procedure for Holding Inquiry and Imposing Penalties by Adjudication Officer) Rules 2005 asking responses on matter relating to alleged non-compliance with certain provisions of the erstwhile Listing Agreement and the Sebi(Listing Obligations and Disclosure Requirements) Regulations, 2015.
Both Kochhar and the bank have maintained there has been no regulatory violation on their part and that Kochhar was not aware of specific business dealings of her husband.
As first reported by The Indian Express, Dhoot provided crores of rupees to a firm he had set up with Deepak Kochhar and two relatives six months after the Videocon group got Rs 3,250 crore as loan from ICICI Bank in 2012. The amount was part of the Rs 40,000-crore loan that Videocon group secured from a consortium of 20 banks led by SBI. Tyagi also said that the regulator is trying to expedite it’s adjudication against the National Stock Exchange (NSE) and other institutions for alleged violations of norms in a case pertaining to algorithm trading.
Algorithmic trading, or “algo” in market parlance, refers to orders generated at superfast speed by the use of advanced mathematical models that involve automated execution of trade. Even a split-second faster access is considered capable of bringing huge gains to a trader.
“Adjudication has started against 28 to 30 individuals and institutions apart from the NSE. We are applying the principles of natural justice in each case. We are trying to expedite the cases,” said Tyagi.
A Sebi probe has founds that some brokers got preferential access to the trading system through the co-location facility (where brokers can buy “rack space” for their servers) at the NSE.
Tyagi said that NSE’s consent application can be taken up only after the regulator concludes its adjudication proceedings.