UTV founder Screwvala, Delta Corp settle case with Sebi

Market regulator Sebi has settled proceedings against entertainment major UTV's founder Rohinton Screwvala and Delta after they made a total payment of Rs 13.600000 towards consent settlement related to alleged violations of securities laws. The case pertains to Delta Corp , formerly Arrow Webtex, purchasing 7.5000000 warrants from Screwvala in 2008. The regulator found that payments related to the off-market transaction were made beyond the time period prescribed under the laws.The Securities and Exchange Board of India (Sebi) has said that Screwvala, Managing Director of UTV Software Communications Limited and Delta Corp have reached consent settlements. Both paid Rs 6.800000 each to settle the case.In two similarly-worded orders, dated August 19, Sebi has said the payments were made "for the sole purpose of settling the matter on hand and without admission or denial of guilt".In February 2008, Delta Corp had bought 7,50,000 warrants, at a price of Rs 660 each, Screwvala through off-market transactions. The payments, worth over Rs 360000000, were made in three tranches with the last one being in September, 2008.According to Sebi, since the payments were made beyond the period prescribed in Securities Contracts (Regulation) Act, the transaction did not meet the requirements of a spot delivery contract.As per the SCR Act, any transaction in securities has to be either through stock exchange mechanism or through spot delivery contract.While adjudication proceedings against the two entities were in progress, they sought settlement under Sebi's consent order mechanism. After deliberations, the market regulator's High Powered Advisory Committee on Consent (HPAC) recommended settling the case.The transaction came to the notice of Sebi when it was looking into the affairs of UTV Software Communications.In 2008, Screwvala and persons acting in concert -- The Walt Disney Company (South East Asia) Pte Limited Unilazer Exports and Management Consultants Limited Unilazer (Hongkong) Limited had given open offer to acquire 77,45,494 shares of UTV.The public announcement for the open offer was made on February 18, 2008. The open offer took place from October 8-27, 2008 while it was originally planned for April 11-30, 2008.