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HC asks Magistrate to hear Sebi's complaint in HLL case

Allowing a writ petition filed by Securities and Exchange Board of India, Bombay high court has directed a magistrate to expeditiously hear the complaint by the regulatory body against Hindustan Lever Ltd and its directors for alleged insider trading.

The market regulator had launched criminal prosecution against HLL and its directors in November 1998 by filing a criminal complaint in a metropolitan magistrate's court in Mumbai, Sebi said in a release on Monday.

This prosecution was launched for violation of Sebi's (prohibition of insider trading) regulations, 1992 in the course of merger of Brook Bond India Ltd with HLL.

However, the magistrate before whom the complaint was filed, had not taken a decision in the matter for more than three years and the matter continued to be adjourned, it said.

Aggrieved by the inordinate and abnormal delay in taking cognisance of the offence against HLL by the magistrate, Sebi filed the petition in the high court on August 14, 2002, the regulator said.

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