SEBI Vs. SAMIR C ARORA
LAWS(SB)-2003-8-6
SECURITIES APPELLATE TRIBUNAL
Decided on August 09,2003

Appellant
VERSUS
Respondents

JUDGEMENT

T.M.Nagarajan, - (1.) SEBI conducted investigations into the management, conduct and other affairs of the Alliance Capital Asset Management (I) Pvt. Ltd. (ACAML).
(2.) On the basis of the investigations conducted by SEBI it was found that Alliance Capital Management L.P. (ACM) of USA is the parent company of Alliance Capital Management Corporation of Delaware, USA, the sponsor of Alliance Capital Mutual Fund (ACMF). ACAML is the Asset Management Company of ACMF. ACAML is the subsidiary of Alliance Capital (Mauritius) P Ltd. whose parent is ACM. Hence ACM is the ultimate parent of ACAML also. During the course of investigations, it was found that in October 2002, ACM confidentially invited bids for sale of its stake in ACAML, the aforesaid Asset Management Company of ACMF from the potential acquirers. Newspapers and electronic media reported this impending sale during mid January 2003 and reported a fall in Assets Under Management (AUM) of ACAML by around Rs.1000 crores.
(3.) IT was observed that ACM issued a press release on February 3, 2003, stating inter-alia that after evaluating all options it had decided to retain its ownership interest and would continue to manage and support ACAML as an on-going asset manager in the Indian market place. The release also mentioned that Samir Arora would continue to act as Chief Investment Officer of Alliance Capital Indian operations and would remain the head of Asian Emerging Market Equities for Alliance Capital globally.;


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