Credit Suisse's India operations suspended for a month
SEBI suspends Credit Suisse in India for one month on account of trades conducted during 1999-2000.
IndiaÆs SEBI (Securities Exchange Board of India) announced on Friday, August 11 that Credit Suisse in India was suspended for one month for "omission to observe the code of conduct", relating to trades conducted more than 6 years ago in the 1999-2000 time period.
Credit Suisse First Boston India Securities was suspended in India for regulatory issues for a period of two years in April 2001. In an investigation at the time a number of stocks were identified as exhibiting trading irregularities in the 1999-2000 time period. One of these was South East Asia Marine Engineering and Construction Limited (formerly Peerless Shipping), and it was because of this stock that the current one month suspension was doled out. Credit Suisse was suspended on grounds of alleged price manipulation of the stock. The SEBI order was passed on August 10, 2006 and will come into force 21 days from the date of the order.
A Credit Suisse spokesperson comments: ôThis is a legacy issue and has no impact on our ongoing plans to re-establish a presence in investment banking in India.ö The suspension is in relation to something which transpired more then five years ago. Although all Indian media reported the suspension, most of them also noted the historical nature of the ruling and viewed the entire issue more as one of cleaning up the past then anything else.
Credit Suisse is now operating in India under the new worldwide brand and has hired some industry veterans to spearhead its foray into what is fast becoming one of AsiaÆs hottest investment banking markets. In July Credit Suisse announced that Nilesh Jasani would shortly be relocating from Taiwan to India as director and head of research. Jasani joins Mihir Doshi who moved to Credit Suisse in January to head investment banking from Morgan Stanley. Credit Suisse also recently opened a financial consultancy and advisory office in Mumbai to expand its on-the-ground wealth management business.
Credit Suisse First Boston India Securities was suspended in India for regulatory issues for a period of two years in April 2001. In an investigation at the time a number of stocks were identified as exhibiting trading irregularities in the 1999-2000 time period. One of these was South East Asia Marine Engineering and Construction Limited (formerly Peerless Shipping), and it was because of this stock that the current one month suspension was doled out. Credit Suisse was suspended on grounds of alleged price manipulation of the stock. The SEBI order was passed on August 10, 2006 and will come into force 21 days from the date of the order.
A Credit Suisse spokesperson comments: ôThis is a legacy issue and has no impact on our ongoing plans to re-establish a presence in investment banking in India.ö The suspension is in relation to something which transpired more then five years ago. Although all Indian media reported the suspension, most of them also noted the historical nature of the ruling and viewed the entire issue more as one of cleaning up the past then anything else.
Credit Suisse is now operating in India under the new worldwide brand and has hired some industry veterans to spearhead its foray into what is fast becoming one of AsiaÆs hottest investment banking markets. In July Credit Suisse announced that Nilesh Jasani would shortly be relocating from Taiwan to India as director and head of research. Jasani joins Mihir Doshi who moved to Credit Suisse in January to head investment banking from Morgan Stanley. Credit Suisse also recently opened a financial consultancy and advisory office in Mumbai to expand its on-the-ground wealth management business.
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