The Securities and Exchange Board of India (Sebi) has
debarred Hinduja TMT from dealing in securities as a capital
market intermediary for two years for violating its regulations.
TMT, formerly Hinduja Finance Corporation, was the lead
manager for Subhash Projects and Marketings (SPML)
rights issue in 1995. The intermediary had to take
the responsibility for the infractions committed as an
intermediary even after the lapse of registration,
the Sebi chairman said in his order dated 11 January 2003.
TMT was the lead manager to the rights issue with pre-issue
responsibility that included capital structuring, drafting
the offer document and marketing the issue. The company
was also given a standby underwriting commitment to SPML
to the extent of 8,00,000 equity shares.
the issue, there were a number of complaints regarding
irregular subscription and funding of subscription to
the rights issue.