Sebi settles matter against Den Networks
Market regulator Sebi has disposed of the case against Den Networks and 24 other entities after they made a total payment of Rs 4.93 crore to settle charges of alleged unfair practices in the market.
March 13, 2013 / 20:39 IST
Market regulator Sebi has disposed of the case against Den Networks and 24 other entities after they made a total payment of Rs 4.93 crore to settle charges of alleged unfair practices in the market. Besides the cable television services firm, its Chairman and Managing Director Sameer Manchanda and six directors are also part of the consent deal reached with Securities and Exchange Board of India (Sebi).
In the show cause notice, it was alleged that Den Networks Ltd had directly or indirectly provided funds to certain entities who made application for its IPO. "It has also been alleged that Den Networks Limited had not made such disclosures. The Board of Directors of Den Networks Ltd have also been issued show cause notices for the alleged violations committed by the company," Sebi said in its consent order dated March 11.Out of the total settlement amount, Den Networks and its promoter group Lucid Systems has made a payment of Rs 2.08 crore each. Lucid Systems has also paid an additional Rs 2 lakh. As part of the consent deal, Sameer Manchanda has paid Rs 2 lakh. Besides six directors of Den Networks -- Robindra Sharma, Atul Sharma, Shahzaad Siraj Dalal, Raghav Bahl, Ajaya Chand and Krishna Kumar PT -- have also paid Rs 2 lakh each.The company had approached Sebi to settle the proceedings against them under the regulator's consent order mechanism. "The applicants without admitting or denying the guilt on their part had proposed the revised consent terms to settle the said adjudication proceedings and the proposed prosecution proceedings on payment of Rs 4.93 crore," Sebi said.Thereafter, Sebi's High Powered Advisory Committee (HPAC) after considering the consent terms recommended the case for settlement on payment of the amount. The HPAC recommendations were later also accepted by the market regulator.
Accordingly, the company and all other entities remitted the amount in January, this year. Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the firm and the entities is found to be untrue. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
