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Black Monday: UBS securities barred from issuing p-notes for a year
Mumbai/New Delhi: The Securities and Exchange Board of India (SEBI) has issued orders against UBS Securities over its role in the stock markets crash of Black Monday last year and has prohibited it from issuing offshore derivative instruments. The market regulator said UBS failed to furnish details of transactions.

Last year on May 17, the Sensex had shed nearly 800 points in intra-day trades and ended over 500 points lower. The sharp fall had led to the suspension of trading twice during the day. SEBI has determined that on May 17 last year, UBS Securities had sold Rs188.35 crore in the cash market and built up short positions of Rs434 crore in Nifty Futures, and had also built up positions of Rs292 crore in stock futures.

"We need to know whose money is being invested. If people drag their feet on this, the regulator will not be comfortable," SEBI chairman Damodaran said but ruled out any specific plans by SEBI against hedge funds. Damodaran said despite being given adequate opportunity, UBS had failed to furnish information about six of its clients.

Caxton, the largest client of UBS, sold Rs99 crore of stocks on May 17. UBS, which did dealings for hedge fund clients on Black Monday, was one of the largest sellers in the cash segment on May 17 last year. SEBI has sought further information from 12 major clients of UBS.
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GMO Fund picks up 3.36 per cent in IVRCL
Hyderabad: GMO Emerging Markets Fund has announced that its entities have acquired 6,77,700 shares of IVRCL Infrastructures & Projects Ltd, aggregating 3.36 per cent of IVRCL's equity.

GMO Emerging Markets Fund and two separate accounts advised by GMO - Commonfund Emerging Markets Investors Company and Stichting Pensioenfonds ABP have acquired the shares from the secondary market on May 10.
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