Financial Daily from THE HINDU group of publications
Saturday, Jan 21, 2006
Financial Daily from THE HINDU group of publications Saturday, Jan 21, 2006 |
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Mergers & Acquisitions Industry & Economy - Economic Offences Jet-Sahara deal makes RSP see red — Alleges insider trading, seeks SEBI probe Ambarish Mukherjee
New Delhi , Jan 20 THE Left allies of the Manmohan Singh Government have sought a probe into the Jet Airways and the Air Sahara deal by the Securities and Exchange Board of India (SEBI). Left sources said that the issue would be discussed in the next meeting of the Left parties, after which it could be formally taken up at the UPA-Left coordination committee meeting. The Revolutionary Socialist party (RSP) chief and MP, Mr Abani Roy, told Business Line that the move by Jet Airways to acquire Sahara without approval from the shareholders are a violation of shareholders' rights as well as of the listing agreements that the aviation company has with the BSE and NSE. "That is why I have asked for a probe by the market regulator and have urged the Finance Minister to initiate the move," Mr Roy said, and added that the price movement of Jet prior to the acquisition clearly indicates insider trading. Explaining the cause of small investors in a letter to the Finance Minister, Mr P. Chidambaram, Mr Roy has stated that "I therefore urge SEBI to probe share price movement and trading volumes of Jet Airways for a period of one month prior to the news break of Jet acquiring Sahara on the evening of January 10, 2006." The Left leader points out specifically that "the share price movement and trading volumes on January 9, 2006 show that stock price suddenly shot up by 5 per cent (Rs 45) and the volumes shot up 4 times, the day prior to the news break." "Obviously someone in the know of the deal was active in the share market to make illegitimate and unethical gains at the cost of non-promoter shareholders," Mr Roy said.
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