sebi:AO/BS/06/2009
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Facts / Headnote
Allegations not established; no penalty imposed; proceeding disposed of
Provisions invoked
- s. 15H
Regulations
- Reg. 199
Holding
The Adjudicating Officer held that the allegations against the noticee (acting as BRLM) of violating sub-clause (v) (a) of clause 11.3.5 of the DIP Guidelines and clauses 1, 2, 3, 4, 9, 11, 26 and 27 of the Code of Conduct for Merchant Bankers were not established, and no penalty was warranted under Section 15HB of the SEBI Act, 1992.
Full text
allotment price was fixed at Rs.50/- per share. The QIB allocation was finalized between the Issuer and the BRLMs on July 15, 2005.
5. In view of the above mentioned deficiencies it was alleged that the notice has violated the provisions of sub-clause (v) (a) of clause 11.3.5 of Chapter XI of SEBI Disclosure and Investor Protection Guidelines, 2000 and also the provisions of the Code of Conduct for Merchant Bankers enumerated under clauses 1, 2, 3, 4, 9, 11, 26 and 27 under Schedule III of the SEBI (Merchant Bankers) Regulations, 1992.
a) The allotment to the QIB investors was made on considering different parameters including earliness of the bids, investor quality, price aggression etc. b) Under the DIP Guidelines, the issuer company is vested with the discretion to determine the basis of QIB allocation in consultation with the BRLMs and as such the exercise of this discretion is consistent with the industry practice and the applicable laws. c) The broad parameters prescribed under sub-clause (v) (a) of clause 11.3.5 of the DIP Guidelines are only indicative in nature and do not provide for any inter se precedence among the same. However, there are a number of parameters which were
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Source: SecMarx — sebi:AO/BS/06/2009. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.