SEBI finally cracks whip on Shriram Mutual Fund

SEBI finally cracks whip on Shriram Mutual Fund
EEB & AGENCIES

MUMBAI, FEB 2: In a delayed move, the Securities and Exchange Board of India has debarred the former managing director of Shriram Mutual Fund (SRMF) from holding any position in any capital related public institution for three years. It also directed four trustees of the mutual fund to step down for their complicity in the payment crisis on the BSE and the NSE in June 1998.

The regulator, following investigations, directed the group to pay SRMF Rs 25.62 lakh to make good the losses incurred by it and asked two officials of the asset management company, who assisted the former MD, to resign with immediate effect, SEBI said in a statement here today.

However, the regulator is yet to announce any action against the promoters of the companies involved in price rigging. This is the first ever major crackdown on any mutual fund by the regulator in the payment crisis and allegations of manipulations in the scrips of BPL, Videocon International and Sterlite Industries.

Sebi said investigations revealed thatSRMF purchased 1,20,600 shares of Videocon on June 24, 1998 at a price higher (Rs 84) than that prevailing in the market (Rs 63) through broker Jaysukhlal Jagjivan Stock Brokers.

Xedd Telecom MD
MUMBAI: The special judge for economic offences, Hyderabad, has convicted Xedd Telecom Ltd and its managing director P K Jain, for non-transfer of shares despite the SEBI's directives to do so.

The court has sentenced the company and its managing director to pay a fine of Rs 53,150 each. On the basis of large number of unresolved investors' complaints received, Sebi had filed a criminal complaint against the Hyderabad-based firm and its directors.