InvestorQ : Why has Astra Zeneca Pharma been pulled up by SEBI?
Anamika Sodhani made post

Why has Astra Zeneca Pharma been pulled up by SEBI?

Answer
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3 months ago


Astra Zeneca Pharma India Ltd has been pulled up by SEBI for professional misconduct and unfair trade practises during its 2014 delisting. At the centre of the investigation is the company, its promoter group and Elliot Group (which held 15.52% stake). All the key entities had allegedly indulged in fraudulent and unfair trade practises. Elliot held these shares through a clutch of sub-accounts. It had picked up the stake in the OFS in May-13 and agreed to tender the shares in 2014 as part of the delisting process. The probe, which began in 2014, explored the angle that Elliott acted in collusion with promoters to influence the delisting price in such a way as to set the price at a level detrimental to the interests of retail shareholders. In the midst, the promoters were active negotiating with Elliott Group regarding a exit price which would help Astra eventually delist the stock. It all began with allegations of collusion between promoters and Elliott group. Elliott had voted in favour of the delisting resolution in March 2014. Had Elliott not voted, the proposal to delist would not have gone through.