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Himachal Futuristic Communications ex-director settles GDR manipulation probe with Sebi

Press Trust of India  |  New Delhi 

Himachal Futuristic Communications former has settled a probe with Sebi in a matter related to alleged manipulation in issuance of global depository receipts by paying Rs 1.36 crore towards settlement charges.

was the of during the time of alleged violation, and the regulator had initiated adjudication proceedings against him in June 2018.

(HFCL) had issued global depository receipts (GDRs) amounting to USD 50 million in September 2002. Out of this, GDRs worth USD 46.5 million were subscribed by only one entity, Roker Securities Inc.

The subscription amount for GDRs was paid by Roker Securities after securing a loan from Lisbon-based

However, it is alleged that the firm had pledged the GDR proceeds to the against the loan given to Roker for subscription of GDR issue, Sebi said.

Besides, it is alleged that the GDR issue would not have been subscribed if HFCL had not given any such security towards the loan taken by Roker.

Regarding Maloo, Sebi said he "signed the account charge agreement and has acted as party to the scheme".

While the proceedings were pending, filed an application under settlement mechanism and proposed to pay Rs 1.36 crore without admission or denying of guilt.

The settlement amount proposed was approved by a panel of board's whole-time members, the Securities and Exchange Board of (Sebi) said in an order dated April 11.

Accordingly, the proceedings initiated against Maloo for the alleged default are "settled", Sebi said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 12 2019. 18:36 IST