Sebi To Hear Shankar Sharma On August 1

Mumbai, July 30: | Updated: Jul 31 2002, 05:30am hrs
The crucial board meeting of the capital markets regulator Securities and Exchange Board of India (Sebi), which is scheduled for August 1 (Thursday) in Mumbai, is expected to give a final hearing to banned stock broker Shankar Sharma, owners of First Global Stock Broking. The Sebi board is also expected to discuss at length, the recommendations submitted by the Takeover Panel headed by Justice PN Bhagwati along with the feedback received from the general public.

The Sebi board is expected to deliberate on the written submission filed by the First Global Group, as it (First Global) was directed by the regulator in its earlier meeting held on June 24, 2002 to do so.

The First Global Group was asked to file written submissions with respect to its plea to lift the suspension slapped on them by the regulator under Section 11 and 11B of the Sebi Act (1992).

The Sebi order to file the written submission came as it continued the hearing of Mr Sharma, which was left inconclusive at the previous board meeting of the regulator held on May 14 this year at New Delhi. After the new Sebi chairman GN Bajpai took over, this will be the third board hearing of the First Global Group.

Dhirendra Swarup, additional secretary Ministry of Finance (MoF), who was recently appointed on Sebi board after Rakesh Mohan relinquished the post of economic advisor to MoF, is expected to attend his first Sebi board meeting on Thursday.

First Global and other three Group companies owned by Mr Sharma and his wife Devina Mehra were banned by the regulator last year, after it prima facie found out that these entities were involved in the stock market crash of March 2001.

The Sebi board hearing for the First Global Group follows the Bombay High Court directive of January 29, 2002, wherein it directed the regulator that a fresh hearing should be held and the matter be expedited.

The case of this stock broker has been dragging on for a some time now. Mr Sharma’s firms including his broking outfit have been barred from various activities like portfolio management, underwriting, merchant banking and dealing in securities following the Sebi ban.

First Global challenged the regulator’s order and went in appeal against Sebi’s directive to all possible forums, including the Securities Appellate Tribunal.