Sebi disposes of case against three individuals in BoR matter

Market regulator Sebi today dropped cases against three individuals in relation to a probe into the affairs of erstwhile Bank of Rajasthan (BoR) for alleged irregularities on part of the company's former promoters.

In three separate orders, Sebi has disposed of cases against Ashok Prasad Singh, Satyendra Srivastava and Sudhir Kumar Srivastava saying they were not directors of Cyber Infosystems & Technologies, a promoter group company of BoR.

After taking into consideration all the facts and circumstances, Sebi said it did not find it a fit case to impose any monetary penalty. "The case is accordingly disposed of," Sebi (Securities and Exchange Board of India) said in three similar worded orders.

The three individuals had served as directors of Cyber Infosystems alleged to be persons acting in concert (PAC) entity of BoR's former promoters.

It was also alleged that the they had violated various Sebi's regulations for prohibition of fraudulent and unfair trade practises which made them liable for monetary penalty.

"The noticee was not a director of Cyber Infosystems during the relevant period," Sebi said today.

The matter relates to Sebi's investigation into the affairs of BoR for a period between June 2007 and December 2009. Later, BoR was acquired by ICICI Bank.

During the period, it was found that the shareholding of the promoters of BoR led by Pravin Kumar Tayal with their PACs had increased from 46.80 per cent in June 2007 to 63.15 per cent in December 2009.

The bank's promoters along with their PACs had increased their shareholdings by way of acquiring shares from the market.