SocGen faces Sebi heat on PNs
Monday, 18 January 2010
MUMBAI, Jan 17 (Economic Times): India's stock market regulator - the Securities and Exchange Board of India, or Sebi - Friday issued a show-cause notice to foreign institutional investor Societe Generale (SocGen) and barred it from issuing new participatory notes (PNs) for alleged violation of rules relating to PN issuances.
Societe Generale has been given 30 days to respond to the show-cause notice asking why appropriate proceedings, including cancellation of its certificate of registration as an FII, should not be initiated against it. Interestingly, the regulator had passed a similar order against another portfolio investor, Barclays Bank, last month for similar violations. In both cases, the PNs had Reliance Communications stock as the underlying, and were issued to Hythe Securities and then, onward issued to Pluri Emerging.
Societe Generale has been given 30 days to respond to the show-cause notice asking why appropriate proceedings, including cancellation of its certificate of registration as an FII, should not be initiated against it. Interestingly, the regulator had passed a similar order against another portfolio investor, Barclays Bank, last month for similar violations. In both cases, the PNs had Reliance Communications stock as the underlying, and were issued to Hythe Securities and then, onward issued to Pluri Emerging.