(a) whether Securities and Exchange Board of India (SEBI) has conducted/
proposes to conduct any investigation into the use of funds parked in
undisclosed overseas bank accounts allegedly owned by several prominent
promoters and Chief Executive Officers (CEOs);
(b) if so, the details and the outcome thereof;
(c) the action taken against the guilty; and
(d) the other steps taken/proposed to be taken by the SEBI to
curb such illegal activities?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)
(a): On receipt of information that the amounts raised towards External
Commercial Borrowings (ECB)/ Foreign Currency Convertible Bonds (FCCB)
by the Anil D. Ambani (ADA) Group Companies had been used by them to
invest in the stock market and that investment vehicles abroad were used
as a means for the same, Securities and Exchange Board of India (SEBI)
had conducted investigations into the alleged affairs relating to the
dealings, either directly or indirectly, in the shares of Reliance
Communications Limited (RCL) by the ADA Group Companies.
(b): Investigations revealed that Reliance Infrastructure Ltd. and Reliance
Natural Resources Ltd. were prima facie responsible for misrepresenting
the nature of investments in “Yield Management Certificates / Depositsâ€
and profits & losses thereof in their three Annual Reports and misusing
the framework of SEBI (Foreign Institutional Investors) Regulations, 1995.
(c): Pursuant to investigation, a show cause notice was issued under
sections 11, 11(4) and 11B of the SEBI Act, 1992. Subsequently, under
the provisions of the then prevailing consent circular the matter was
consented, vide a consent order dated 14 January 2011.
(d): Whenever such matters come to the notice, SEBI conducts investigation
and takes appropriate actions.