BJP member of parliament and president of Investor Grievance Forum (IGF) Kirit Somaiya today said that the Global Trust Bank's (GTB) exposure in the capital market was at 28.96 per cent of advances (Rs 930 crore) on January 31, 2001 and 32 per cent on March 31, 2001.
Somaiya is also a member of the Joint Parliamentary Committee (JPC) probing the stock market scam.
However, GTB has refuted the claim and said the market exposure as on January 31 was Rs 1163.8 crore, which is around 20.6 per cent of its advances.
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According to Somaiya, GTB's investment in shares/debentures on January 31 was Rs 90.81 crore and advances against shares debentures was Rs 930 crore on advances of Rs 3211.01 crore, which amounted to 2.83 per cent and 28.96 per cent.
GTB had previously in writing informed IGF that its advances to the capital market were in the region of Rs 560 crore, while its advances was Rs 5,000 crore.
Somaiya said GTB promoter Ramesh Gelli had misled investors as well as regulators such as the RBI, Sebi, and also the government.
However, a senior GTB executive said the market exposure on January 31 was Rs 1163.8 crore-- fund-Rs 595.48 crore, non fund Rs 415.77 crore and exposure to investment companies (NBFC) Rs 152.55 crore.
This amounted to 20.6 per cent of the total advances. Advances of the bank on January 31 was Rs 5,626 crore--fund based advances Rs 3688 crore and non-fund base Rs 1938 crore and not Rs 3211.01 crore. The advances of the bank on March 31,2000 was Rs 3211.01 crore.
GTB officials added that the total capital market exposure of the bank on March 31,2001 was at Rs 902.29 crore and on May 29 it was at Rs 724.15 crore. This amounted to 15.05 per cent and 13.72 per cent of total advances respectively.
The total advances including fund and non-fund based for March 31 was at Rs 5995 crore and on May 29 it was Rs 5275 crore.
Somaiya has demanded that SEBI should immediately initiate action for criminal proceedings under Sec 11 and 24 of SEBI Act.