Date:21/12/2005 URL: http://www.thehindu.com/2005/12/21/stories/2005122101421800.htm

Business

Bharat Overseas Bank suspends 4 managers

Stops IPO financing; terminates Karvy services

CHENNAI: Bharat Overseas Bank Limited has placed four managers under suspension following the Securities and Exchange Board of India enquiry and report in connection with the YES BANK initial public offer. It has stopped IPO financing in October after an internal audit report revealed anomalies in the case of multiple demat accounts opened by the same party/parties, says a bank release.

The Chairman, G. Krishna Murthy, has asked a senior executive of the level of Deputy General Manager to conduct a detailed enquiry into the IPO financing by the bank and submit a report by January first week, 2006. He said, "We wish to reiterate that we are not glossing over the episode. We are committed to ensuring that the causative factors are removed and such a lapse does not occur again. Given the serious nature of the matter, we do not wish to take any less-than-serious measures." As the bank is not a depository participant, it had entered into a tie-up with Karvy Consultants Ltd., which it has since terminated. Two of the concurrent auditors of the bank have retired by rotation and norm, but a third one has been asked to step down, under advice from the bank, following this episode, the release adds.

YES BANK clarifies

Meanwhile, YES BANK has clarified that the order issued by SEBI indicted certain investors and has mandated further probe into certain depository participants.

YES BANK is not the specific subject of any fiasco, as suggested by a headline published in these columns on December 17. No orders have been passed against YES BANK, it adds.