The Securities and Exchange Board of India (Sebi) on Thursday disposed of an inquiry against RBS Asia (former ABN Amro Asia) related to the sharp fall in the stock market in May 2004.
The consent order from the market regulator came in the wake of RBS Asia remitting Rs 60,0000 towards settlement charges without admitting or denying the charges.
It was alleged that RBS Asia failed to exercise due diligence in respect of registration of clients and issued P-Notes without complying with the know-your-customer norms. It was also alleged that RBS Asia undertook short sales, which foreign institutional investors are now allowed, in two scrips and failed to provide client information to Sebi.
The consent order is effective from June 24. However, Sebi has reserved its rights to initiate enforcement action, including re-opening of proceedings against RBS, in case the latter's representations in consent proceedings are discovered to be untrue and if it breaches any consent term.