The Orissa High Court has directed the Securities and Exchange Board of India to investigate Neeraj Singhal-led Bhushan Group's stake purchase in Orissa Sponge Iron & Steel Ltd and has suspended its voting right in the secondary steel producer.
"It is directed that the regional manager of Sebi, Kolkata, shall investigate into the affairs of opposite parties No 7-24 (Bhushan Group) regarding acquisition of/ dealing in their shares in the Osil," the division bench comprising Justice I M Reddy and Justice S Panda said.
The court further directed the market regulator to investigate "whether there was any violation of Sebi (Substantial Acquisition of Shares and Takeover) regulations 1997" in buying stake of the Orissa Sponge Iron & Steel Ltd (Osil).
The division bench also directed Sebi to submit its investigation report by next hearing on June 22.
The court also held that Bhushan Steel and other respondents which are alleged to be its affiliates "shall not acquire, alienate, transfer, and sell any of their shares in Osil to any third party".
Meanwhile, the bench also suspended the voting rights of the Bhushan Steel till its further order.
"... Their voting rights which represent the Bhushan Steel Group as regards their acquisition of any share in Osil shall remain suspended until further orders of the court," the court ordered further.
