Sebi penalises entities in over decade-old Home Trade case

Sebi today penalised a number of entities for violating trading norms in over a decade-old case relating to the shares of Home Trade Ltd.
The regulator asked 12 entities to pay, along with the consideration amount, an interest at the rate of 10 per cent per annum, from November 1999 till the date of payment, to the shareholders who were holding shares in the company on the date of violation of norms and whose shares are accepted in the open offer.
The Securities and Exchange Board of India (Sebi), in an order passed today, also asked these entities to make a public announcement in accordance with the Takeover Regulations within a period of 45 days.

Further, the regulator has restrained a total of 20 entities, including Home Trade Ltd, from accessing the securities market for a period of 10 years.
The investigations, which started in 2002, allegedly found the promoters, directors and key officials of Home Trade involved in cornering over 95 per cent of the floating scrip of the company.
The manipulated scrips of the company were later used to secure loans from financial institutions resulting in huge loss to cooperative banks.
The entities also allegedly indulged in off-market transactions with a view to siphon money out of India.