Dilip Pendse, former managing director of Tata Finance, is likely to make a final deposition before the Securities and Exchange Board of India ( Sebi) on the alleged insider trading case. Pendse has already met Sebi officials on a couple of occasions earlier.
The deposition is expected to cover several issues pertaining to the Tata Finance fiasco and may spill over to the next day.
Other former senior executives of Tata Finance and its erstwhile subsidiary Niskalp Trading, allegedly involved in the insider trading case, have already met Sebi officials. "If he is found guilty, a showcause notice will be sent to him and he will be given four weeks to respond," sources said.
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The Sebi is also probing the alleged circular trading based on inspection into the books of the finance company. The probe was initially instituted after the regulator came across a reference to circular trading in the report prepared by chartered accountancy firm A F Ferguson on irregularities in Tata Finance.
However, Sebi sources said the investigation is still at a preliminary stage and it had not arrived at any conclusion.
Sebi is already investigating the alleged insider trading charges by Pendse and another director J E Talaulikar, in the company's stock. While the investigation into Taluaulikar's case was complete, the regulator is yet to make significant headway into other aspects of the case.
Other than Sebi , the Reserve Bank of India has also undertaken a routine inspection of TFL's accounts. The Department of Company Affairs ( DCA) has also consulted Reserve Bank of India and other regulators in connection with financial irregularities involving Tata Finance Limited and the Ferguson report.
DCA had indicated that it may launch inspection of TFL's books of accounts to determine whether any financial irregularities had taken place.
The Tatas have forwarded the scrapped Ferguson reports to DCA, Sebi as well as RBI.