Sterlite Ind Hearing Today On Escrow Account Freeze

Representatives of Sterlite Industries are expected to meet the Securities and Exchange Board of India (Sebi) chairman D R Mehta today.

According to Sebi sources, Sterlite Industries and its associates are expected to explain in detail their stand on the issue of freezing of the escrow account in the Indal takeover case.

Securities and Exchange Board of India sources also said that the capital market watchdog will ensure that the investor's interest is protected. Sebi is likely to ask Sterlite Industries to pay up or use the money deposited in the escrow account.

"We will ensure that the investor receives his money. Sterlite representatives have sought a hearing. They are expected to clarify their stand. We will certainly listen to them and take a decision then," the Sebi source said.

 

When senior officials at Sterlite Industries were contacted, they denied having any official meeting with Securities and Exchange Board of India officials.

"We are waiting for Sebi to announce an official date of hearing. We are not meeting Sebi officials," a company source said.

The company source said that they have already replied to the Sebi show-cause and that no date of hearing has been announced.

Enam Financials officials were not available for comment.

Securities and Exchange Board of India had written to the merchant banker, Enam Financials, seeking details

about the status of the number of shares received by Sterlite in the offer.

Sterlite has received about 10 lakh shares of Indal through the open offer announcement. However, Sterlite Industries has declined to accept shares lodged by investors through the open offer.

The decision was taken in an extraordinary general meeting called for allotment of optionally convertible Preference shares.

Mutual fund major, Templeton, is also expected to wait for the Securities and Exchange Board of India action before taking any independent move.

They have lodged more than 8 lakh shares with Sterlite through the offer.