Rediff Logo
Money
Line
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Weather | Wedding | Women
Partner Channels: Auctions | Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel
Line
Home > Money > Business Headlines > Report
April 12, 2001
Feedback  
  Money Matters

 -  Business Special
 -  Business Headlines
 -  Corporate Headlines
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff

    
      



 
 Search the Internet
         Tips
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page

HSBC-Zee share deal under cloud

Ashwin J Punnen & Janaki Krishnan

Sebi will ask the Directorate of Revenue Intelligence and Enforcement Directorate to look into purchases made by a fund managed by HSBC Investment in Zee Telefilms.

Sebi investigations have found that HSBC Investment Bank had bought 11 million shares of Zee Telefilms in mid-February, amounting to 2.6 per cent of the company's paid-up capital.

Sebi sources said that the probe had revealed that the deal was brokered by Triumph International, owned by Ketan Parekh and it was a spot transaction between a FII and a local party. According to Sebi regulation, spot deals between FIIs and domestic firms are not permitted. The regulator has in fact put a ban on all such deals.

Sebi is understood to have taken a serious cognisance of the deal since it is a violation of the regulations. Sources said that Sebi will ask DRI and ED to conduct further investigation into the matter to ascertain whether either of the parties has violated foreign exchange regulations. The fund is registered in Amsterdam and managed out of London by HSBC Investment Bank.

HSBC officials were not willing to offer any comments on the deal.

Interestingly, the deal amounting to the tune of Rs 2.54 billion constitutes about 96 per cent of the FII's total corpus. The fund managed by Sanjay Duggal has a total corpus of Rs 2.65 billion.

It is understood that the shares were acquired a price ranging between Rs 230-Rs 240.

Powered by

ALSO READ:
The Capital Markets Crisis
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report