Sebi orders HFCL Infotel to halt draft offer for sale

Mumbai, Mar 13 (UNI) The Securities Exchange Board of India (SEBI) has passed an order withholding the draft offer for sale document filed by HFCL Infotel till proceedings are disposed off.

SEBI had conducted investigations into the buying, selling and dealing of shares of HFCL for the period between October 1, 1999 to March 31, 2001, a senior member of BSE said.

Investigations revealed that during the said period, HFCL, promoters and subsidiaries of HFCL Group had provided funds and HFCL shares to the entities connected with Ketan Parekh (hereinafter referred to as KP entities) and thereby aided and abetted the KP entities in price manipulation in the scrip of HFCL.

In view of the findings of the investigations, a show cause notice was issued to the promoters/associates of HFCL including HIL.

During the pendency of the proceedings, HIL filed a draft Offer for Sale document with SEBI on December 23, 2005.

On June 13, 2006, Sebi informed HIL that the draft offer for sale document shall be investigated by SEBI into the alleged manipulation of shares by the promoters, associates and subsidiaries of HFCL, including HIL, marketmen added.

UNI