Bright Star & #39;S 4 Disclosures

The revised purchase offer document made by Bright Star for VST, which has been approved by the Securities & Exchanges Board of India (Sebi) last week, has made four disclosures to prospective sellers as required under the Sebi regulations.

The first states that Damani Shares & Stock Brokers, Maheshwari Equity Brokers, R S Damani and G S Damani are "being investigated as part of investigations undertaken recently by Sebi in regard to alleged market manipulations".

The second states that "search under section 132 of the Income-Tax Act has been undertaken by the income-tax department against PAC (persons acting in concert) and the following associates entities of PAC on March 23" including Damani Estates, Vasarm Real Estate, Champak Stock Brokers, Maheswari Equity Brokers, Damani Shares & Stock Brokers and Avenue Stock Brokers.

"Post-search proceedings, details called for by the income-tax department has been furnished by the respective entities", says the document.

The document said that as on date of the offer, neither Bright Star nor the PAC is a member of any stock exchange. No punitive action has been taken against Bright Star by Sebi or any stock exchange. The PAC conducts stockbroking through some of the entities mentioned above.

The final disclosure states that the BSE has undertaken an inspection of the books of accounts of Maheswari Equity Brokers and Damani Shares and Stock Brokers on March 2001. The National Stock Exchange of India has undertaken an inspection of the books of accounts of Damani Shares & Stock Brokers in March 2001.

The two exchanges have not communicated any feedback of their inspection to these entities till the date of the letter of offer.