document.writeln("

UBS Securities moves securities tribunal against Sebi ban
Mumbai: On Monday, UBS Securities Asia, a registered foreign institutional investor (FII), moved the Securities Appellate Tribunal (SAT) against the one-year ban imposed on it by Sebi on May 17, for failing to make appropriate disclosures about one of its clients which had sold heavily on Black Monday, May 17, 2004.

So far, UBS Asia is the only market participant to be pulled up by Sebi for the Black Monday market crash on May 17, 2004. Although UBS was not penalised for heavy selling on that day, it was banned for not disclosing sufficient details about one of its clients, who had sold on that day using the participatory note route.

Participatory notes are offshore derivative instruments used by foreign investors unwilling to invest in India directly.
Back to News Review index page  

Syndicate Bank's second public issue to open on 7th July
Mumbai: The Syndicate Bank has announced the launch of the second public issue of the bank, which will open on July 7 and close on July 13, 2005.

The bank will issue 5 crore shares, at a face value of Rs 10, through book-building process. The price band will be announced on July 6.

The book-running lead managers for the issue are SBI Capital Markets, Enam Financial Consultants, J.M. Morgan Stanley and SSKI Corporate Finance Private Limited.

The money raised would be used to augment capital requirements to meet Basel II norms and also for future growth, bank officials have said. The public issue will also bring down the government stake from 73.5 per cent to 66.5 per cent. The bank's capital would rise to Rs521.9 crore from Rs471.9 crore.

The bank had earlier sold 2.5 crore equity shares in 1999.
In this second issue, the bank has also reserved 50 lakh shares for employees.

The bank also plans to set up a venture capital fund, for which it has permission from Reserve Bank of India and is awaiting permission from the Securities and Exchange Board of India (SEBI), said a senior official. SIDBI and an overseas fund had shown interest in the venture, the official added.

On June 15, the bank had raised Rs500 crore worth Tier-II capital, through a non-convertible bond issue.

In 2004-05 the bank saw 17.49 per cent growth in savings deposit and 21.55 per cent growth in advances. The Capital Adequacy Ratio was 10.7 per cent while its net NPA was at 1.59 per cent.
Back to News Review index page