Market regulator Sebi today dropped its charges against an individual related to a probe into the affairs of erstwhile Bank of Rajasthan (BoR) for alleged irregularities on part of the bank's former promoters.
In its order, Securities and Exchange Board of India (Sebi) said it did not find the case against Sanjeev Sharma "a fit case to impose any monetary penalty".
"The case is accordingly disposed of," it added.
Sharma had served as director of two companies – Eskay K'n'it (India) Ltd and K-Lifestyle and Industries Ltd, entities alleged to be a person acting in concert (PAC) of BoR's former promoters.
Sebi had alleged Sharma of violating various norms including those pertaining to prohibition of fraudulent and unfair trade practices.
However, in its adjudication order, Sebi noted that Sharma was a non-executive independent director of K-Lifestyle during the investigation period and was not involved in the day today affairs of the company.
Further, the regulator observed that the probe "has not brought out any specific role of the noticee (Sharma) in the day to day management of the company".
In the case of Eskay K'n'it as well, Sebi said the "investigation has not brought out any specific role of the noticee in the day to day management of the company during the period June, 2007 to October 13, 2009, when the noticee was the independent director of the company".
"It is noted that the transactions took place much earlier than the noticee was appointed as the Managing Director of the company," it added.
The matter relates to Sebi's probe into the affairs of BoR for a period between June 2007 and December 2009. Later, BoR was acquired by ICICI Bank.
During the period, it was found that the shareholding of the promoters of BoR led by Pravin Kumar Tayal with their PACs had increased from 46.80 per cent in June 2007 to 63.15 per cent in December 2009.
The bank's promoters along with their PACs had increased their shareholdings by way of acquiring shares from the market.