The Hindu : Only marginal redemptions

Online edition of India's National Newspaper
Tuesday, Aug 12, 2003

Business

Business

Only marginal redemptions — Alliance Capital

By Our Special Correspondent

MUMBAI AUG. 11. Alliance Capital Asset Management Company today stated that there was only a marginal redemption of Rs. 10 crores from its equity portfolios after the Securities and Exchange Board of India indicted Samir C. Arora for flouting SEBI rules.

The SEBI on Saturday debarred Mr. Arora, Head, Asian Emerging Markets of Alliance Capital Management (Singapore) from buying, selling or dealing in securities in any manner, directly or indirectly, till further orders.

It also found that Mr. Arora had managed significantly large amount of funds under his direct control in a non-transparent manner.

"Our prime interest is our investors and we take our fiduciary responsibilities seriously and we will also examine carefully the issues raised in this order to satisfy ourselves that everything being done is in the best interest of our investors,'' said Ajai Kaul, Senior Vice-President and Head — Asian Emerging Markets, Alliance Capital, while talking to The Hindu.

Mr. Kaul confirmed that there have been redemptions by investors today. "However, they have not been large.

As of now the redemptions in our equity portfolio has been about Rs. 10 crores out of Rs. 850 crores of equity funds managed by us,'' he added.

Meanwhile, Digital GlobalSoft Ltd (Digital) today stated that it has implemented and adopted comprehensive insider trading policy guidelines and processes, which are in compliance with SEBI regulations and support best practices of corporate governance.

The SEBI also indicted Mr. Arora that funds under his management did not make a declaration to the respective companies when their shareholding crossed the threshold limit of 5 per cent in case of Balaji Telefilms, Digital Globalsoft, Mastek, Hinduja TMT and United Phosphorous as required under Regulation 7 of SEBI (Prohibition of Insider Trading) Regulations 1992. In some cases wrongful disclosures under said Regulation 7 "possibly to mislead the investors and the public at large,'' were made.

"The company and its officials concerned have been compliant with and conform to its policy guidelines and processes, SEBI regulations, trading restraints and the applicable disclosure norms.

Digital therefore maintains its view that it does not believe that any irregular flow of information could have emanated from within the company in this regard,'' Digital stated.

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