Press Release

Investigations were carried out by SEBI into the alleged price manipulations in the scrips of BPL , Videocon and Sterlite,in 1998. Investigations were completed in three stages. In the first stage, it was brought out that a set of brokers and sub brokers acting on behalf of a common set of clients who were acting as a front for Shri Harshad Mehta cornered large chunk of shares of Videocon, BPL and Sterlite. This cornering led to price manipulation. The scrip prices rose substantially. Pursuant to these investigations, 17 brokers (10 of BSE and 7 of NSE ) were suspended for periods ranging from one to three years. Several other brokers were given lesser punishment. Secondly, the President of BSE was asked to relinquish the office. The Vice President of BSE resigned following investigations. Later investigations were completed against Harshad Mehta and BPL, Videocon and Sterlite by October, 1999. Show cause notices were issued to them in December, 1999. Once the notices were issued , SEBI was required to hear these cases in quasi judicial manner. The parties asked for inspection of the documents. Later on they also asked for cross examination of witnesses which prolonged the proceedings. After giving them the opportunity of final hearings in the month of March/April,2001. The following 4 orders have been passed by SEBI today :

1. SEBI has permaneantly debarred Harshad Mehta under Section 11 and 11B of SEBI Act, read with Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices for dealing in securities) Regulations, from dealing in securities. His prosecution has also been ordered under section 24 of SEBI Act.

2. BPL Limited has been debarred from accessing capital market for a period of 4 years under section 11 and 11B of the SEBI Act. Prosecution proceedings of the company through 5 of its directors/ officials has been ordered under section 24 of SEBI Act for violation of SEBI Act and SEBI(Prohibition of Fraudulent and Unfair Trade Practices for dealing in securities)Regulations..

3. Videocon International Ltd.. has been debarred from accessing capital market for a period of 3 years under section 11 and 11B of the SEBI Act. Prosecution proceedings of the company through 3 of its directors/ officials has been ordered under section 24 of SEBI Act for violation of SEBI Act and SEBI(Prohibition of Fraudulent and Unfair Trade Practices for dealing in securities)Regulations..

4. Sterlite Industries Ltd. has been debarred from accessing capital market for a period of 2 years under section 11 and 11B of the SEBI Act. Prosecution proceedings of the company through 3 of its directors/ officials has been ordered under section 24 of SEBI Act for violation of SEBI Act and SEBI(Prohibition of Fraudulent and Unfair Trade Practices for dealing in securities)Regulations..