Pendse held again, in police custody

Delhi police have arrested former managing director of Tata Finance Limited (TFL), Dilip S. Pendse, over charges of violating Sebi guidelines and causing loss of about Rs 9.5 crore to the Tatas. He was on Tuesday produced in a city court and remanded to police custody for seven days. According to a complaint lodged with the police, Pendse contracted with stock broker Rajinder Jhunjhunwalla for sale and purchase of 85,000 shares of Global Tele Systems, when he was director of TFL associate Inshallah Investment Ltd. These contracts were ‘‘principal to principal,’’ meaning Jhunjhunwalla was personally the seller and IIL the purchaser. As per rules, such a contract is known as an off-market contract, and the broker is legally bound to inform the stock exchange within 48 hours of transacting it. But this was not followed in this case.

Meanwhile, Sebi debarred Pendse from trading in the securities market for a period of six months for indulging in insider-trading in the stocks of TFL. (ENS)