Sebi Plans Strong Action Against Nepc

The Securities and Exchanges Board is planning to take "extreme action" against the NEPC group for non-payment to minority shareholders of Skyline NEPC (formerly called Damania Airways), during its takeover bid.

According to a highly placed source at Sebi, the question of debarring the NEPC group from tapping the capital markets in the future is not ruled out. The decision is likely to be taken soon and Sebi is now examining the legalities and implications of the issue.

The NEPC group, which is now in deep financial crisis, had made an open offer in December 1995 to buy out around 65 lakh shares of Damania.

 

The offer price was Rs 35.25 per share with a face value of Rs 10. While the payment was required to be made within four weeks of the offer closure, the investors' shares along with applications for transfer were returned without payment. Now, after more than one year, around 8,600 shareholders have not been paid.

Sources state that this is the first time such a kind of predicament has been faced the investor. "Such extreme measures harming the investor warrant extreme action," stated the official.