Financial Daily from THE HINDU group of publications
Tuesday, Jul 19, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jul 19, 2005 |
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Markets
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Economic Offences UBS case may go for adjudication Our Bureau
Mumbai , July 18 UBS Securities' appeal against the Securities and Exchange Board of India order banning it from issuing participatory notes could go in for adjudication, with a possible penalty of Rs 50 crore. SEBI had banned UBS Securities Asia Ltd (UBS) from issuing participatory notes for a year following its investigations into the market crash on Black Monday, May 17, 2004. UBS has appealed against this order to the Securities Appellate Tribunal (SAT). At the hearing today, the Presiding Officer of SAT asked SEBI whether it would consider the case going into adjudication, whereby SEBI's order would be upheld and UBS can pay a fine and resume issuing participatory notes for its clients investing in the Indian securities market. The market regulator's legal counsel said he would consult SEBI and inform the Court of their decision tomorrow. The order against UBS has three elements in it. One, the FII is accused of not complying with the `Know your Client' regulations. Secondly, SEBI alleges that UBS did not share information with it during the investigations and thirdly that there were errors in the information provided. The counsel for UBS argued in the Court that of its 30 clients, SEBI had sought information about 24. Of this, UBS furnished details about 18 clients. The order is about the six clients about whon information was not provided to SEBI. UBS Securities said even details about these six clients were provided, however, this was done after the order was passed by SEBI. UBS Securities Asia also said in court today that the six entities about which information was not provided continue to trade in the Indian market, through other FIIs.
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