Market regulator SEBI, armed with new powers, moved into top gear in 2014 passing several orders that were both unique and tough in nature. Prominent among these is an order barring DLF and six of its top officials from accessing the markets for three years. The ban order against DLF is the first of its kind as never in the country’s history a company that is part of both BSE Sensex and NSE Nifty been barred by the market regulator.
The Securities and Exchange Board of India imposed the ban on India’s largest real estate developer and six officials, including Chairman KP Singh, after finding them guilty of engaging in fraud and unfair trade practices. DLF has challenged the order in the Securities Appellate Tribunal, and the appellate body has been hearing the case for sometime now.
Prison term to defaulterAnother unique order relates to Vinod Hingorani; SEBI has sent 58-year old Vinod Hingorani to jail for defaulting on the payment of a penalty. This is the first time the regulator has sent an individual to jail, after being empowered to do so in August this year. The SEBI order was passed in a case involving Adam Coms of India and Kolar Biotech. The case relates to advertisements about a bonus issue of shares of Kolar Biotech as well as about a global depository receipt issue by the company.
Another significant order pertains to Financial Technologies (India). On March 19, SEBI had issued an order which held FTIL not ‘fit and proper’ to acquire or hold a stake directly or indirectly in a stock exchange or clearing corporation and asked it to divest its stake in MCX-SX, MCX-SX Clearing Corporation, Delhi Stock Exchange, Vadodara SE and the NSE, within 90 days, with an immediate freeze on voting rights. FTIL has taken almost all steps to comply with SEBI orders.
SEBI had also barred Moryo Industries, its promoters and others totalling 91 entities from dealing in the securities market holding them guilty of converting black money into white through trading on the bourses.
During the year, the market regulator also came down heavily on errant collective investment schemes.