The Securities and Exchange Board of India (Sebi) has decided to look into the matter of possible insider trading in the case of merger of Polaris Software Laboratories Ltd (PSLL) with a Citigroup company Orbitech Solutions Ltd.Sebi chairman G.N. Bajpai said: “I’m not aware of the development that took place before and after the merger announcement made by PSLL, but if there is any violation, we will definitely look into it.” On May 13, PSLL in response to the media reports about possible merger deal with the Citigroup company had informed BSE that the IT firm was evaluating various options, but there was no firm understanding with anybody. But on May 22, PSLL board approved a proposal to merge with Orbitech, a technology subsidiary of Citigroup.Earlier, while delivering the key note address at a seminar on ‘Emerging Capital Market Scenario-Investors’ confidence’, Bajpai indicated that the Indian capital market is all set to take off and there are certain indications which gives strong hint on the same.Said Bajpai: “I expect the Indian capital markets to revive very strongly and one of the reasons for this revival is the number of companies queuing up for initial public offering (IPO). Many companies and banks have filed their offer documents for their IPOs”. He said that “some of the areas where we plan to move fast is to set up a central listing authority. Such a concept is not there any where in the world. In the central listing authority, full participation of exchanges is required for listing”. Bajpai also told reporters that the report of the internal committee on de-listing appointed by Sebi will be out in the first week of June.He said that the objective of capital markets is to make available avenues and disburse the wealth appropriately. On the issuers side, it should be easy for them to mobilise capital with less expenses. While on the investor front, it should give the highest return with least possible risk and with the utilisation of resources at its maximum. For the raiser of the capital, the procedure to raise the capital should not be lengthy or much more onerous.
