SEBI bars Tata Finance former MD Pendse, 3 other entities

SEBI bars Tata Finance former MD Pendse, 3 other entities

SEBI bars Tata Finance former MD Pendse, 3  other entities

Markets regulator Sebi has barred former Tata Finance (TFL) managing director Dilip Pendse, AL Shilotri (ex-president and chief executive officer of Niskalp) and two firms from accessing capital markets for three years.

The firms which have been banned include Pat Financial Consultants and Superior Financial Consultancy Services, SEBI whole time member Prashant Saran said.

The noticees, namely DS Pendse and AL Shilotri, are restrained from accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of three years.

Pat Financial Consultants and Superior Financial Consultancy Services are restrained from accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of three years, Saran added in the 43 page order.

The order refers to the matter regarding a complaint received from Tata Finance dated October 18, 2002, regarding the rights issue of the company. The complaint alleged certain fictitious backdated transactions of sale and purchase in the shares of Global Telesystems and Global E-Commerce Services between Niskalp, a subsidiary of TFL and TFL.

According to the complaint, fictitious/ backdated transactions in the scrip of GTL and GECS had converted the loss of Rs 14.59 crore  to a profit of Rs 11.45 as on September 30, 2000 in the books of Niskalp. An investigation by SEBI prima facie found backdating of the transactions of sale of shares of GTL and GECS in September 2000 by Niskalp and purchase by TFL and reversal of such trades in December 2000 were at the behest of DS Pendse, AL Shilotri and broking firms/ entities connected to Bharat J Patel and his relatives/ associates.

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