Finds ex-Tata Finance MD guilty of illegal trades

In a high-profile case dating back to over 12 years, Sebi has found former Tata Finance Managing Director Dilip Pendse had executed 'illegal transactions' in stocks of four firms including Infosys and
erstwhile Telco.

The latest order, which has been passed after years of probe and various directions issued by Sebi itself and the Securities Appellate Tribunal in between, prohibits Pendse from accessing capital markets for two years.

While the present order, passed on Monday, comes into effect immediately, Sebi said that the period of prohibition already undergone by Pendse (imposed by an earlier order dated December 24, 2012) would be taken into account while implementing the new directive.

Amid a public spat between him and the Tata group, Pendse was removed as Tata Finance chief way back in 2001 after a company subsidiary ran huge mark-to-market losses and the group also filed criminal charges against him.

While Pendse refuted all charges, which included those related to fraud, he also had to spend time in jail. Sebi has passed the latest order after the Securities Appellate Tribunal (SAT) quashed Sebi's 24 December, 2012 directive against Pendse and asked the regulator to pass a fresh order 'on merits and in accordance with law as expeditiously as possible and in any event within a period
of six months'.

Giving the background of the case, Sebi said it began its probe after receipt of a complaint in October 2002 from Tata Finance about Pendse conducting 'illegal carry forward transactions in the scrips of Himachal Futuristic Communications Ltd (HFCL), Tata Engineering and Locomotive Company Ltd (presently known as Tata Motors), Infosys and Software Solutions India Ltd (SSI).


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