Market watchdog Sebi has vacated its earlier order restraining some of the promoter entities of Welspun Corp from buying, selling, or dealing in the securities of the company and other listed group firms.
Sebi, in a March 16 order, said based on the findings of its investigation no action or proceedings are recommended against Welspun Corp (formerly Welspun-Gujarat Stahl Rohren).
Following this, the interim directions issued vide order dated December 2, 2010 are revoked, considering the proposed adjudication proceedings and also the fact that the entities have already undergone debarment for a period of 15 months, the capital market regulator said.
The Sebi had barred Welspun Corp from trading on the stock exchanges for allegedly indulging in fraudulent and unfair trade practices.
Welspun has welcomed Sebi order lifting ban on it.
"This is a landmark judgement which has exonerated Welspun Group promoters, and reaffirms highest standard of corporate governance and ethical practices within Welspun Group," Welspun Group Chairman and Managing Director BK Goenka said in a statement here today.
The $3.5-billion Group is a leader in line-pipe and home textiles. Its client list includes Fortune 100 companies operating in the oil & gas and retail sectors like Chevron, Exxon Mobil, Wal-Mart and Target, amongst others.
Recently, the Group entered into ports business and is the sole bidder for an upcoming port at Vizhinjam in Kerala. However, the Kerala Government is yet to take a call on accepting its bid.
