…issues first set of Consent Orders

With regard to Blue Information Technology Ltd (BITL), Sebi said that it has conducted an investigation into the alleged irregularities in the trading of shares of BITL. Enquiry proceedings were initiated against one Shrikant G Mantri, a BSE member.

Subsequently, he made an application before the regulator and proposed revised consent terms, submitting that “I hereby propose to pay Rs 5 lakh as the term of consent in the enquiry proceeding initiated by Sebi in the matter of BITL”. The revised consent terms as proposed by the applicant were placed before the High Powered Advisory Committee (HPAC), which after deliberation recommended the case for settlement on the revised consent terms proposed by the applicant, Sebi said.

The capital markets watchdog said that in view of the application, it has been decided to dispose of the said enquiry proceedings pending before Sebi against the applicant in BITL. In another case, Sebi has conducted an inspection against P N Vijay Financial Services (PNV) following allegations made by Brig (retd) R S Anand. Sebi has initiated enquiry proceedings against PNV, which are pending with it.

PNV has made an application and submitted revised consent terms, proposing to offer Rs 5 lakh towards consent terms in the matter. The regulator has disposed of the said enquiry proceedings before Sebi against the applicant.

Sebi has passed similar consent orders in four other cases, including Priyans Saree Industries Ltd, Granules India Ltd and Ojas Technocam Ltd.

According to Sebi, consent order provides flexibility of a wider array of enforcement and remedial actions, which help achieve the goals of appropriate sanction, remedy and deterrance without resorting to litigation, lengthy proceedings and consequent delays.