Telco Told To Mention Tata Fin Risk: Rights

The Securities and Exchange Board of India (Sebi) has asked Telco and Tata Investments Corporation to mention in both the companies' offer document for their rights issue that the capital market watchdog is investigating charges of insider-trading against Tata Finance director J E Talaulicar.

Talaulicar was the chairman and director of Niskalp Investment and Trading company, formerly a Tata Finance subsidiary.

Further, Sebi is also asking both the companies to include the allegation that Tata Finance suppressed facts in its offer document for its rights issue which opened on March 30, 2001.

Tata Finance made a rights issue of cumulative convertible preference shares for an aggregate amount of Rs 90.93 crore which closed on April 30.

Tata Industries and Telco are the two largest shareholders in Tata Finance. Tata Sons is the promoter of Telco and Tata Investments.

Sebi cleared the Telco rights issue offer on Monday. The company plans to raise up to maximum of Rs 978.65 crore through the issue.

Tata Investments has filed an offer document of 32.82 lakh zero per cent convertible debentures of Rs 100 each aggregating Rs 32.82 crore. The lead managers for both the issues were JM Morgan Stanely.