Securities and Exchange Board of India (Sebi) is set to issue a reasoned order on First Global tomorrow within the time-frame set by the Bombay High Court, even as the capital market watchdog and the brokerage's Shankar Sharma are engaged in a tiff.
Sebi officials confirmed that the order would be passed tomorrow. The entire issue seems to be revolving around perusal and submission of documents.
Sharma is alleging that the Sebi investigation report contains incorrect data while Sebi has taken a complete noncommittal stand and asked Sharma to clarify his claims.
Sharma did not show up for the hearing by Sebi on May 23. Sebi's surveillance and investigation wing promptly dashed a letter to the firm observing, "you have failed to attend the meeting." The Sebi note also advised him to furnish a hard copy of the power point presentation which Sharma made to the capital market watchdog at his hearing on May 18.
First Global's reply to this was that "all documents, information and submissions in response to the captioned show cause notice had already been filed with Sebi on May 10." The firm also pointed out that though it was willing to meet the Sebi chairman, the firm was "categorically informed by you to await a response from your end. In the circumstances, your letter is at variance with ongoing interactions."
The First Global note, signed by director Devina Mehra, states, "We cannot see how the contents of our presentation could be relevant for the reasoned order required to be passed by the chairman since the contents are merely a repetition of the key points of our complete and detailed reply which has been with you since May 10, 2001."
