Sebi ban on Welspun, Hubtown promoter entities goes

The Securities and Exchange Board of India (Sebi) has lifted the ban imposed earlier on several promoter entities, including those of Welspun Corporation and Hubtown Ltd. The ban related to a manipulation case in 2010 .

In an order dated December 2, 2010, Sebi had banned the promoter entities of four companies and Sanjay Dangi and Ashika group entities for their alleged role in stock manipulation. The regulator, in an order dated March 16, vacated charges on 30 of the 60-odd entities banned for alleged involvement in manipulation of shares of five companies — Murli Industries, Hubtown Ltd (erstwhile Ackruti City), Welspun Corp (erstwhile Welspun-Gujarat Stahl Rohren), Brushman (India) and RPG Transmission.

The 30 entities to be relieved include all the six Welspun Group and 13 Hubtown Ltd entities. Meanwhile, Sebi has initiated action against 18 entities and adjudication proceedings against 20. “The restraining order passed earlier had no operational impact on the business. It was a psychological barrier for the company, our bankers, customers and suppliers,” said Akhil Jindal, director of Welspun Group. “Now it has been proven that the company adheres to highest standards of corporate governance,” he added.

Added Vyomesh Shah, managing director at Hubtown, “We are gladour consistent stand has been vindicated.” “There is nothing to suggest the revocation of interim directions would result in resumption of the undesirable activity for which the interim directions were already issued,” the Sebi order said.

Shares of Welspun Corp gained 1.9 per cent to close at Rs 139.5 on the National Stock Exchange. Shares of Hubtown Ltd declined 0.69 per cent to Rs 186.