SEBI's high powered advisory committee (HPAC) on consent orders met today. Last week SEBI had released new guidelines for consent mechanism. The HPAC met to decide what happens to the existing cases, reports CNBC-TV18's Payaswini Upadhyay.
The SEBI's HPAC have recommended that all the cases where application of consent is already been received from the applicant will come under the old guidelines. There are about 20 such cases that are pending before SEBIs internal committee as of now.
The high powered committee looked at several high profile cases of consent applications that have already been reviewed by SEBIs internal committee and this includes the consent application of India Infoline. The major charges against the brokerage firm were execution of trades in clients’ account without their instruction and not displaying the order details in the contract note.
Another application that the high powered committee looked at was of the promoter and the promoter group of Tips Industries. The charge against the promoter, Renu Taurani, Varsha Taurani and Ramesh Taurani is that they violated regulation 11 of the takeover code by not making a public announcement for acquisition of 0.1% of the equity shares of Tips Industries. This acquisition was over and above the original holding of 57.66%.
The committee has said that the violation is too grave to be settled under the consent process and has rejected their application.
Lastly, the high powered committee also said that the HSBC case of alleged circular trading in Adani Groups stocks is not consentable.
Sources also say that the SEBI internal committee has already rejected HSBCs consent application earlier. Also watch the accompanying video.
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