Mumbai : The Securities and Exchange Board of India (Sebi) has initiated an inquiry into the affairs of pharma major Sun Pharmaceutical Industries on the basis of a whistle-blower complaint, said regulatory sources.
The sources said the market regulator was in receipt of a 150-page letter in which the whistle-blower accused the company of committing corporate governance and tax-related lapses, besides other securities market-related violations.
When contacted, a Sun Pharma spokesperson said, “We have not been contacted by Sebi in this regard.”
Sebi, according to sources, also plans to reopen an insider trading case against the company and its promoters that was settled through the consent mechanism.
Sun Pharma, its Managing Director Dilip Shanghvi, and nine others had settled the insider trading probe, paying Rs 1.8 million against the settlement charges in 2017.
While Sebi had not disclosed details of the case, it was probably linked to the acquisition of Ranbaxy by Sun Pharma from Japanese drugmaker Daiichi. The regulator had agreed to settle the proposed adjudication proceedings linked to the violation of the internal code of conduct for prevention of insider trading. No enforcement action was initiated for the alleged defaults.
Sebi starts probe against Sun Pharma, to also reopen insider trading case “The allegations raised by the whistle-blower are of serious nature. We will look into each one of them,” said a regulatory source.
Sources said Sebi had also taken cognisance of another note by Australia-based brokerage Macquarie on the faulty audit process and dubious practices used while raising funds through foreign currency convertible bonds (FCCBs). In 2004, Sun Pharma had launched a $225 million FCCB issue.
The foreign brokerage is learnt to have raised concerns about selecting a small-time London-based firm, Jermyn Capital Partners, to manage the issue. The Indian arm of this entity is believed to have had links with stock brokers Ketan Parekh and Dharmesh Doshi, both of whom had come under scrutiny for the market crash of 2002.
Besides, Sebi has referred the tax-related allegations to the Central Board of Direct Taxes (CBDT).
Earlier this week, the Sun Pharma stock touched a six-month low after a foreign brokerage raised concerns about corporate governance practices at the drug major. On November 28, the stock fell 3 per cent during the day, but recovered partially to close at Rs 486.35 apiece on the BSE, down 1.47 per cent. On Friday, the stock closed at Rs 492.3, up 1.84 per cent from the previous close.
Saudi signs deals to invest USD 20 bn in cash-strapped Pakistan
Islamabad: Pakistan and Saudi Arabia have signed a slew of investment agreements worth USD 20 billion which will provide a welcome relief to the teetering economy of the cash-strapped South Asian country.
At a ceremony in the Prime Minister House, Pakistan and Saudi officials signed MoUs for bilateral cooperation in a number of areas a process overseen by Pakistan premier Imran Khan and Saudi Crown Prince Mohammad bin Salman, who arrived in Pakistan on Sunday evening on a two-day visit.
“Today we signed MoUs. The amount of that kind of investment is USD 20 billion. It is big for phase one and definitely it (Saudi investment in Pakistan) will grow every month, every year in bigger numbers and it will be beneficial for both the countries,” the crown prince said.
“Pakistan is going to be very, very important country in the future and we want to be sure we are part of that,” he added.
Seven agreements, including MoUs in power, petrochemical and mining sectors, were inked as Prince Salman launched his diplomatic trip to Asia in Islamabad.
After Pakistan, the crown prince will travel to India, where he will meet Prime Minister Narendra Modi and Petroleum Minister Dharmendra Pradhan.
He is expected to finish the trip with a visit to China on Thursday and Friday.
Prince Salman said Saudi “cannot say no to Pakistan, whatever you (Pakistan) want we will do.”
“For Pakistanis, this is a great day,” the Pakistani premier said while addressing a dinner reception held in honour of the visiting Saudi guests at the PM House.
He said Saudi Arabia has always been there when Pakistan needed friends.
“I want to thank you for the way you helped us when we were in (a) bad situation,” Khan told the royal guest, adding that Pakistan and Saudi Arabia were now taking their relationship to a new level, where investment agreements would be mutually beneficial for the countries.
“The future is exciting for both Pakistan and Saudi Arabia after joining hands,” he said.
Cement, fruit shipments from Pakistan among 10 most hit imports after duty hike
New Delhi: Fresh fruits, cement and leather are among the 10 main imported items from Pakistan that would take a major hit following the imposition of 200 per cent customs duty by India on products from the neighbouring country in the aftermath of Pulwama attack, say experts.
The top ten products exported by Pakistan to India include fresh fruits, cement, petroleum products, minerals, and leather. Processed minerals, inorganic chemicals, raw cotton including waste, cotton fabrics, and glass and glassware are also among such items that account for 95 per cent of the total shipments.
“After drastically hiking the import duty on goods coming from Pakistan, we will isolate them in front of trade. Hiking of the duty at this level would completely hit exporters of Pakistan,” Professor Biswajit Dhar of Jawaharlal Nehru University (JNU) said.
Sharing similar views, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said that Pakistan would face significant impact due to this decision.
The two main items imported from Pakistan are fruits and cement, which attracted customs duty of 30-50 per cent and 7.5 per cent, respectively.
Domestic importers who have already placed their orders from Pakistan may face issues after this decision. They may have to pay the 200 per cent duty or undertake lot of paperwork to get their consignments, an industry source said.
Taking strong economic action against Pakistan following the Pulwama attack, India Saturday raised the customs duty to 200 per cent on all goods imported from the neighbouring country.
India’s imports from Pakistan had increased to USD 488.5 million in 2017-18 from USD 455.5 billion in 2016-17.
Hike in the duty would drastically increase the prices of Pakistani goods in Indian markets which would make them far less competitive as compared to other imported goods. Slapping an import duty of 200 per cent effectively means almost banning the imports from Pakistan.
Total India-Pakistan trade has increased marginally to USD 2.41 billion in 2017-18 as against USD 2.27 billion in 2016-17.
At least 40 CRPF personnel were killed and five injured on Thursday in one of the deadliest terror attacks in Jammu and Kashmir when a Jaish-e-Mohammad suicide bomber rammed a vehicle carrying over 100 kg of explosives into their bus in Pulwama district.
India needs fewer but stronger, mega banks: FM Jaitley after RBI meet
New Delhi: Finance Minister Arun Jaitley addressed the customary post-budget meeting of the central board of the Reserve Bank on Monday.
Post the meeting, Jaitley said India needs fewer and mega banks which are strong.
“India needs fewer and mega banks which are strong because in every sense from borrowing rates to optimum utilisation the economies of scale as far as the banking sector is concerned are of great help,” Jaitley said.
On interim dividend, RBI Governor Shaktikanta Das said the central bank will take the decision based on the report by Bimal Jalan-led Committee.
Das also said that the RBI will discuss the issue of transmission of rate cut with bank chiefs on February 21.
Earlier this month, the Reserve Bank cut the benchmark interest rate by 0.25 per cent to 6.25 per cent.