CORRIGENDUM

 

For the attention of the Shareholders of

HINDUSTAN ZINC LIMITED

(Registered Office: Yashad Bhawan, Udaipur-313004)

 

CASH OFFER BY STERLITE OPPORTUNITIES AND VENTURES LIMITED (�ACQUIRER�) ALONG WITH STERLITE INDUSTRIES (INDIA) LIMITED (�SIIL�) AND STERLITE OPTICAL TECHNOLOGIES LIMITED (�SOTL�) [PERSONS ACTING IN CONCERT] FOR ACQUISITION OF SHARES FROM SHAREHOLDERS OF HINDUSTAN ZINC LIMITED (HZL) AT Rs. 40.51 PER FULLY PAID-UP EQUITY SHARE

 

SEBI had issued a show cause notice to SIIL and some of its directors on December 20, 1999 under SEBI Act, 1992 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 in relation to the alleged price manipulations in the SIIL scrip.

 

On April 19, 2001, SEBI passed an order prohibiting SIIL from accessing the capital market in India for a period of 2 years from passing of the order and also initiated prosecution proceedings under Section 24 read with Section 27 of the SEBI Act for violation of Regulations 4(a) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 against SIIL through its working directors.

 

SIIL filed an appeal against the order before the Securities Appellate Tribunal (�SAT�). The SAT vide its order of October 22, 2001 allowed the appeal, exonerated SIIL of any violation of Regulations 4(a) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 and set aside the SEBI order of April 19, 2001.

 

SEBI has preferred an appeal against the SAT order in the High Court of Judicature at Bombay and the matter is pending hearing and disposal.

 

The prosecution proceedings under Section 24 read with Section 27 of the SEBI Act for violation of Regulations 4(a) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 against SIIL through its working directors is pending hearing and disposal in the Court of Additional Chief Metropolitan Magistrate, 8^th Court, Mumbai.

 

SIIL has been legally advised that it has an excellent case on legal merit and the chances of success of SEBI appeal and/or prosecution are minimal.

 

Place : Mumbai

Date : May 23, 2002