24 September, 2020

Coping With The Cop-Out

It's the referee's job to blow the whistle, but the zeal has to be balanced by a professional touch

Coping With The Cop-Out
outlookindia.com
-0001-11-30T00:00:00+05:53
We couldn't participate in the Indian Airlines disinvestment process because of this," rues Venugopal Dhoot, chairman and managing director, Videocon International. Dhoot is referring to the April 2001 order from SEBI (Securities and Exchange Board of India) forbidding Videocon from accessing the market for three years to raise fresh capital. The company was accused of rigging the market to manipulate its stock price during the 1998 stock market upheaval.

Fourteen months later, on June 20, the Securities Appellate Tribunal (SAT) overturned the SEBI order, allowing Videocon back into the market. Dhoot can finally think about Indian Airlines again, once the divestment process resumes. Even BPL, which had been exiled from the market for four years, was absolved of all charges. Any party aggrieved by any SEBI order can appeal to the SAT for a review.

The market reacted to the SAT decision instantly. By 10.30 on the morning of June 21, BPL's share price had jumped 6.2 per cent to Rs 61.95 and Videocon's 5.02 per cent to Rs 35.55. A total of 21,514 BPL and 97,521 Videocon...
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