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Tata panel to examine insider trading charge

Ashok Jainani

MUMBAI, Oct. 29

BOMBAY House has set up an internal committee to independently establish the veracity of the insider trading charges against the senior Tata Sons Director, Mr J.E. Talaulicar.

The committee, headed by the independent management consultant, Mr Y.M. Kale, senior partner, A.F. Fergusson & Co, is likely to submit its report early November, reliable sources in the Tata group said.The sources said the committee comprises two senior Tata group directors, Mr J.K. Sethna and Mr Kishore Chaukar.

When contacted, Mr Chaukar declined to confirm or deny the development. All that he said was that that he is not supposed to speak on this matter. Mr Kale said the report would be submitted soon.

Sources close to the Tatas said the committee had been set up at the behest of group Chairman, Mr Ratan Tata, who has taken an interest in ensuring that the corporate governance issue should not be compromised in any circumstances.

Mr Tata had asked the committee to undertake the investigation independently and expeditiously, the sources said.

The committee has started calling all the persons concerned with the development, including the broker, sub-broker and officials of Tata Finance Ltd (TFL).

The sources said the committee had called the broker involved in the back-dating of the transaction carried out by Mr Talaulicar.

The broker was called for recording his statement and to establish whether the transaction was indeed back-dated or not.

It has called for the details of payment received by Mr Talaulicar, whether the broker was funded by TFL to complete the personal transaction of Mr Talaulicar and the depository account statements.

Mr Talaulicar is a director on the board of Tata Sons and Tata Engineering. He stepped down from the board of Tata Finance and its subsidiary Nishkalp Trading & Investment Co Ltd in August.

The committee has sought details with regard to the selling of one lakh shares of TFL by Mr Talaulicar held by him and his family members.

He had sold one lakh TFL shares on March 30, 2001, on the eve of closure of financial results and on the eve of launch of TFLs Rs 93-crore rights issue. An investors association had filed a complaint with SEBI and the economic offences wing of the local police urging for a probe.