MUMBAI, Aug 6: The Securities and Exchange Board of India (SEBI) on Thursday questioned the former chairman of Raasi Cement, Dr B V Raju, and his merchant banker, Lazard Credit Capital on the issue of transfer of 39.49 per cent of Sri Vishnu Cement (SVCL) held by RSL to nine associate companies just prior to Raju's sell out of Raasi Cement to Chennai-based India Cement Ltd.SEBI sources said today that on a request made by Raju, the regulatory body has decided to give more time to Raju and Lazard Creditcapital's Managing Director, Udayan Bose to give detailed reply on the next hearing. Raju along with Kalahastheeswar Finance Pvt Ltd (KFPL) and nine associates made an open offer for acquisition of 47.44 lakh shares of SVCL, to increase their shareholding by another 20 per cent. The Rajus currently hold 43.88 per cent shares of SVCL.
SEBI had issued a notice to Raju on a complaint by ICL saying that the transfer of SVCL shares was not conforming to the SEBI's takeover code. India Cements had further allegedthe shares were transferred at a discounted price of Rs 10 each, while based on company's assets, the effective value should have been Rs 100 per share.
"The transaction was designed to defraud the shareholders of both Raasi and India Cements," ICL sources said.
Based on ICL complaint, SEBI has objected to the manner in which Shri Vishnu Cement was delinked from Raasi Cements by transferring the company's shares to nine group firms, in which Raju was the principal promoter. The market regulator has also sought clarifications as to how the transfer was effected without triggering the takeover code.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
