RBI still awaiting SEBI report on GTB scrip investigations

MUMBAI, APRIL 5. The Reserve Bank of India today said it was still awaiting a final report from the Securities and Exchange Board of India on investigations into unusual price movement of Global Trust Bank share prices, whose merger proposal with UTI Bank has been shelved.

The RBI, in a statement, said it had written to UTI that the apex bank was treating the matter in regard to approval of the merger of GTB and UTI Bank as closed.

A copy of the letter, written by GTB Bank stating that it desires to withdraw the merger proposal, to SEBI for information, the RBI said.

Terming a media report that it had closed the chapter on trying to unearth any alleged wrong doings by GTB or its promoters in the capital market as `baseless and mischievous,' the RBI in a statement said the apex bank had ``at no point in time given an informal or formal approval for the merger proposal nor had it ignored the aspect of alleged rigging of GTB share prices.''

Explaining the sequence of events, the apex bank said it had also written to the Unit Trust of India to go in for a fresh and independent valuation as regards the swap ratio and also requested the capital market regulator to expedite its enquiries and furnish its report before March end.

The RBI said it had noticed some unusual price movements of GTB scrip in November last and requested SEBI to look into the matter, which wrote back in February that it has prima facie found evidence of price rigging in the share price and would shortly give a detailed report.

The RBI said it also received an application from both the banks, duly approved by both their respective boards, about their proposed merger. It also wrote to SEBI to expedite the investigations and send the findings by March end. In the wake of happenings in the market, the RBI also asked the UTI to get the valuation of the proposal done by another independent valuer.

The RBI received another interim report from SEBI on March 30 stating that the detailed investigations to come to final findings would take some more time.

- PTI

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Section  : Business
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