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Market regulator, Sebi, has disposed off a case against Citigroup Global Market Mauritius (CGMM) for alleged non-disclosure of shares purchased in Cairn India.
Sebi had alleged that Citigroup had not made the mandatory disclosure of the share-purchase even though the 15.03 crore shares purchased amounted to about 7.87% of the share capital of the company.
Regulation mandates that any purchase of over 5% of the share capital of any company requires mandatory disclosure to stock exchanges where the company is listed.
Citigroup had clarified that it had purchased a lesser number of shares. At 3.09 crore, the share-purchase by CGMM amounted to only 2.04% of the share capital.
Following this, Sebi admitted that the show cause notice passed against CGMM did not stand and the matter was disposed off directly.
