SEBI imposes ban on Harshad Mehta

MUMBAI, APRIL 19. The Securities and Exchange Board of India (SEBI) today permanently debarred Mr. Harshad Mehta from dealing in securities. His prosecution has been ordered under Section 24 of the SEBI Act. The action was taken after investigations were carried out by the SEBI into the alleged price manipulations in the scrips of BPL, Videocon and Sterlite in 1998. Further, BPL Limited has been debarred from accessing the capital market for four years and prosecution proceedings of the company through five of its directors and officials has been ordered. Videocon International Limited has been debarred from accessing capital market for three years and prosecution proceedings of the company through three of its directors and officials has been ordered. Sterlite Industries Limited is debarred from accessing capital market for two years and prosecution proceedings of the company through three of its directors or officials has been ordered. In another order, the SEBI has decided to debar ten entities from broking and merchant banking activities until further notice. The firms debarred include the broking arm of Credit Suisse First Boston (CSFB), Pulombi Securities Private Limited , five entities of the Bang Group and three entities of the First Global Group.