May 17, 2005
PR No. 76/2005

Order against UBS Securities Asia Ltd.

Securities and Exchange Board of India (SEBI) had conducted investigations into the dealings during May 2004 of UBS Securities Asia Ltd., a SEBI registered FII. Pursuant to investigations, SEBI after considering the facts, found UBS Securities Asia Ltd. (UBS) guilty of violating the provisions of SEBI Act and rules and regulations made thereunder. 
 
Whole Time Member, SEBI vide order dated May 17, 2005 has prohibited UBS / its affiliates / agents from issuing off-shore derivative instruments (ODIs) with underlying Indian securities against the positions held by UBS in the Indian securities market for a period of one year. He has also prohibited UBS / its affiliates / agents from renewing or rolling over any of the ODIs already issued against the positions held by it in the Indian securities market for a period of one year. He has further directed UBS to establish highest standards of Customer Due Diligence process in line with the requirements of FII Regulations of SEBI.
 
This is without prejudice to any other action taken or to be taken by SEBI against UBS in accordance with the provisions of SEBI Act, 1992, the Regulations made thereunder or any other law as may be applicable. This order shall come into force with immediate effect. 
  
 
Mumbai
 
May 17, 2005