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Informist, Sunday, Mar. 2, 2025

NEW DELHI – The Securities and Exchange Board of India Sunday said it will challenge the order by the Mumbai's Anti-Corruption Bureau Court, allowing an application alleging irregularities in permission granted to a company to list on the BSE in 1994. The miscellaneous application was filed before the court against SEBI's former chairperson and three current whole-time members, and two BSE officials, the capital markets regulator said in its press release.

Though SEBI did not name the company, the BSE Sunday said in a statement that the application before the court pertained to the listing of Cals Refineries Ltd. The BSE has suspended the company due to penal reasons and surveillance measures, according to information on its website. Shares of Cals Refineries last traded on the BSE on May 6, 2019, when they closed at INR 0.10. Cals Refineries is not listed on the National Stock Exchange.

In its press release, SEBI said the applicant who moved the Anti-Corruption Bureau Court, seeking directions to the police to register a First Information Report and investigate into alleged irregularities in the listing of the company, "is known to be a frivolous and habitual litigant, with previous applications being dismissed by the Court, with imposition of costs in some cases."

SEBI said the officials named in the application did not hold the respective positions at the relevant point of time. The market regulator said the court has allowed the application without issuing any notice or granting any opportunity to SEBI to place the facts on record.

In the case of BSE, the application has named the former chairman and the current Managing Director and Chief Executive Officer Sundararaman Ramamurthy. In its statement, BSE said these officials "were not in their respective positions at the time of listing and were not connected with the company at all." The exchange said the application is frivolous and vexatious in nature, and that the court "allowed the application without issuing any notice or granting any opportunity to BSE to place the facts on record." BSE also said it is initiating legal steps in the matter.

Cals Refineries had come under the regulatory scanner a few years back. In December 2021, SEBI had passed an adjudication order against Cals Refineries, its managing director, and two other directors, alleging fraud in the company's global depository receipt issue of 2007. SEBi had imposed penalties aggregating INR 168 million against the company, directors, officials, and other related entities in the matter. In the adjudication order, SEBI had said that the company, its directors, and promoters were involved in the dubious GDR issue, the proceeds of which were pledged with a foreign bank, which then provided a loan to an entity involved in the fraud to subscribe fully to the GDR issue.  End

Reported by Rajesh Gajra

Edited by Ashish Shirke

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