On July 8 this year, market regulator Securities and Exchange Board of India (SEBI) barred Allegro Capital Pvt Ltd and its majority shareholder, Bengaluru-headquartered Kunal Ashok Kashyap, from trading in the stock market for a year, of wrongful gains. Ordered evacuation. 24.68 lakh with 12 per cent interest for three and a half years, and Rs 10 lakh each for insider trading in the shares of Biocon Ltd.
It was not known to SEBI or regulatory authorities then that Kunal Kashyap was the ‘custodian’ of the Deanstone Trust set up in New Zealand in July 2015 by the Mauritius-based Glentech International, the ‘settler’. Glentech, which holds shares in Biocon Ltd, is 99 per cent owned by John McCallum Marshall Shaw, a British national and husband of Kiran Mazumdar Shaw, who is the executive chairman of Biocon Ltd, a Rs 7,360-crore biotechnology venture. Is.
According to records checked by the Deanstone Trust, part of a complex structure Indian Express.
At the top is Deanstone Purpose Trust, whose trustee is AsiaCity Trust, a global corporate services company headquartered in Singapore. The Deanstone Purpose Trust was established to hold the shares of a company, Deanstone PTC Limited, through a designated entity Cyrial Limited. Deanstone PTC Ltd., in turn, is a trustee of Deanstone Trust, whose guardian is Kashyap.
The protector in a trust is appointed by the settlor—the one who establishes the trust or authorizes it—to oversee the trustee managing the affairs of the trust.
In the case of the Deanstone Trust, it was sought to give Kashyap the power to appoint and remove the trustee, as the custodian. According to AsiaCity, he has been looking after the assets of the trust since its inception in July 2015. He was, in fact, AsiaCity’s liaison for this transaction.
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As per the latest reports, as on June 30, 2021, Glentech held a 19.76 per cent stake in Biocon Ltd, which was valued at Rs 9,583 crore based on a market price of Rs 404 per share that day.
As settlor, Glentech is a major economic contributor to the Deanstone Trust. In fact, Kashyap is the financial advisor and custodian of the trust, whose funds come from Glentech.
She is also a director at Mazumdar Shaw Medical Foundation along with Kiran Mazumdar Shaw and her husband John Shaw.
What questions arise on corporate governance: Should Biocon Ltd and Glentech International use the services of Kashyap and Allegro Capital when an adverse order is made by the market regulator?
When asked about the arrangement with Kashyap, Kiran Mazumdar Shaw told The Indian Express: “Mr. Kunal Kashyap runs a financial advisory service and has been used by Biocon as well as Glentech. Mr. Kashyap advises several companies apart from Biocon. I understand that the SEBI matter of Mr. Kashyap is currently pending with SAT (Securities Appellate Tribunal) and therefore it would not be appropriate for me to comment further on the same.
Glentech International has approximately $55 million in cash and investments, and real estate including four properties in London, one in Barcelona and one in an upscale residential building in New York, with a cumulative value of approximately $30 million. Kiran Mazumdar Shaw said, “The properties have not been settled in the Deanstone Trust.”
Describing Glentech’s antecedents, she said that her husband founded it as an investment company in 1999 out of his foreign exchange earnings, following Unilever’s becoming a publicly listed company and several other investments in real estate. To acquire the shares held in Biocon. public market. “Glentech is a registered entity which has been disclosed to both RBI and SEBI,” it said.
“Neither my husband, nor I, nor Shree Kashyap are shareholders, trustees, directors, settlors or beneficiaries of the trust,” he said.
The “beneficiaries” of the Deanstone Trust are relatives of KMS (Kiran Mazumdar Shaw), who holds an Indian passport, and JS (John McCallum Marshall Shaw) – the AsiaCity Trust uses these initials to refer to the couple.
“Members of both our families are foreign nationals and are the beneficiaries of this trust. Any contribution received by any member of the family is in compliance with the laws in that jurisdiction,” said Kiran Mazumdar Shaw.
John Shaw is shown registered as a Director in Deanstone PTC Ltd in June 2016.
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