Govt policy on FDI for stock exchanges soon
New Delhi: There are indications that the finance ministry may soon submit its suggestions regarding foreign direct investment (FDI) in stock exchanges to the commerce and industry ministry.

A finance ministry official, speaking at the sidelines of a function organized for the inauguration of a new regional office for the BSE at New Delhi, provided such an indication to reporters, and also said that a policy framework in this regard should soon become a reality.

According to officials, the Government would also consult SEBI and the Reserve Bank of India before firming up their view on the matter.
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SEBI ban against Jermyn Capital upheld by SAT
Mumbai: The Securities Appellate Tribunal (SAT) has upheld a SEBI order, dated January 13, that restrained Jermyn Capital LLC, a foreign corporate sub-account of SEBI registered FII, Taib Bank, from dealing in the Indian securities market.

SAT has said that the Dubai-based Jermyn Capital LLC was found not to satisfy the criteria set out under the Regulation 3 of SEBI (criteria for fit and proper person) Regulations, owing to the linkages between Jermyn Capital LLC, Jermyn Capital Partners PLC (UK) and Dharmesh Doshi / Ketan Parekh.

SEBI investigations had earlier revealed that Jermyn LLC was an associate of the UK-based Jermyn Capital Partners PLC. Jermyn Capital Partners PLC is a corporate entity based in the UK, registered with the Financial Services Authority and also a member of the London Stock Exchange.

Jermyn Capital Partners PLC was formerly known as Triumph Securities UK PLC, a 100 per cent subsidiary of Triumph International Finance (India) Ltd (TIFIL) that had, among others, Ketan Parekh and Dharmesh Doshi as directors.

SEBI's earlier investigations into the stock market scam of 2001 had resulted in punitive action being initiated against TIFIL and its directors, including Ketan V. Parekh and Dharmesh Doshi.

In its ruling upholding the SEBI order, SAT has said that it was quite legitimate to infer from admitted facts that Hugh Hamilton Andrews, a British national who owns 100 per cent shares in Jermyn Capital Partners PLC (UK) and about 40 per cent in Jermyn Capital LLC (the Dubai-based company), and Dharmesh Doshi, the executive director of Jermyn Capital Partners PLC (UK), are "extremely close to each other.''

According to the SAT order, Andrews (chairman of both the companies) who is running the show in India through Jermyn Capital LLC, is a close associate of Dharmesh Doshi, who in turn appears to be a close associate of Ketan Parekh.

SEBI's suspicion that "Andrews, Doshi and Parekh are hand in gloves with each other'' is reasonably strong, the SAT order said.
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