New Delhi: Himachal Futuristic Communications former director Vinay Maloo has settled a probe with Sebi in a matter related to alleged manipulation in issuance of global depository receipts by paying Rs 1.36 crore towards settlement charges.Maloo was the director of HPCL during the time of alleged violation, and the regulator had initiated adjudication proceedings against him in June 2018.Himachal Futuristic Communications Ltd (HFCL) had issued global depository receipts (GDRs) amounting to USD 50 million in September 2002.
Out of this, GDRs worth USD 46.5 million were subscribed by only one entity, Roker Securities Inc.The subscription amount for GDRs was paid by Roker Securities after securing a loan from Lisbon-based bank Banco Efisa.However, it is alleged that the firm had pledged the GDR proceeds to the bank against the loan given to Roker for subscription of GDR issue, Sebi said.Besides, it is alleged that the GDR issue would not have been subscribed if HFCL had not given any such security towards the loan taken by Roker.Regarding Maloo, Sebi said he "signed the account charge agreement and has acted as party to the scheme".While the proceedings were pending, Maloo filed an application under settlement mechanism and proposed to pay Rs 1.36 crore without admission or denying of guilt.The settlement amount proposed was approved by a panel of board's whole-time members, the Securities and Exchange Board of India (Sebi) said in an order dated April 11.Accordingly, the proceedings initiated against Maloo for the alleged default are "settled", Sebi said.