UBS seeks interim stay on Sebi order

UBS Securities Asia has asked for an interim stay on the Securities and Exchange Board of India (Sebi) order barring UBS Securities from issuing any offshore instruments for one year in its appeal filed with the Securities Appellate Tribunal (SAT) on Monday.

The capital market watchdog passed the order on May 18 on UBS' involvement in the May 17 last year stock market crash.

According to sources, the firm has first asked for an interim stay and then depending on the merit of hearing, has urged SAT to decide on the ban or otherwise. "As the matter is now before the tribunal, UBS is unable to comment," said an UBS spokesperson.

"On June 27, UBS Securities Asia filed an appeal against the Sebi order on the basis that it does not accept the order's findings and expressly denies any deliberate misconduct. UBS wishes to stress that it remains entirely committed to the Indian market. As the matter is now before the tribunal, UBS is unable to comment further," an UBS statement said.

Sources in SAT office confirmed that the lawyers of UBS Securities Asia, AZB & Partners, on Monday filed an appeal against the Sebi order.

In connection with the May 17 crash, Sebi's wholetime director G Ananthraman had directed UBS to "establish the highest standards of the customer due diligence process in line with the requirements of the FII regulations of Sebi".

The foreign brokerage house was prohibited from rolling over any of its existing overseas derivative instruments for a year.