Sebi drops charges against a couple in Maytas shares case

In two similar-worded orders, Securities and Exchange Board of India said it did not find the matter against Raji Raju and her husband Raju Venkatraman a "fit case to impose monetary penalty".

In its orders dated February 28, Sebi observed that the allegations on the couple for distorting market integrity and "price discovery process by manipulating the price of the scrip of Maytas" which lead to fraud and deceit upon the investors in the market "does not stand".

The regulator had carried out a probe in shares of Maytas from July 17, 2008 to December 16, 2008.

The investigation found that the promoters of Maytas and related entities had outstanding loans with IL&FS group for Rs 385 crore and SICOM for Rs 40 crore.

In lieu of the said loans they had pledged their Maytas shares with IFCI Ltd, SICOM, IL&FS Financial Services, IL&FS Trust Company and Investsmart Financial Services Company within days after Maytas scrip was listed in October 2007 till end of June 2008.

Further, the knowledge of the pledge of the promoter's and related entities' shares was not public and if the closing price of Maytas fell below Rs 400, these pledges would get invoked.

Investigations found that to keep these pledges intact, the only way for the promoters was to ensure that the closing price did not fall below Rs 400.

It was alleged

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