Sebi investigating 59 GDRs involving $1.2bn

MUMBAI: Markets regulator Sebi on Thursday said it is investigating 59 global depository receipt (GDR) issues by Indian companies for suspected manipulation and wrongdoing that involved trading of GDRs in foreign bourses and trading of underlying Indian stocks in bourses in the country.
Sebi has directed the local custodian banks of these GDR issues, with a combined value in excess of $1.2 billion, to furnish details about the beneficiaries holding such securities.
The regulator said the GDRs of companies being investigated include Aptech, Himachal Futuristic Communications, BSEL Infrastructure Realty, Birla Power Solutions, Zylog Systems and KEI Industries. These GDRs were issued between 2002 to 2014.
The list shows that one of the leading foreign banks which acted as a global depository bank in these GDR issues is The Bank of New York Mellon. Other banks which global depository bank were Deutsche Bank Trust Company Americas, Bankers Trust Company, London, 1 and 2 Citi Bank NA, USA, and JP Morgan Chase Bank, NY, USA. One of the person who is suspected to have played a major role is one Arun Panchariya.