Jermyn Capital moves SC against SEBI ban

Dubai-based investment firm Jermyn Capital LLC today moved the Supreme Court challenging market regulator SEBI's decision to ban it from trading in the Indian securities market for its alleged association with Ketan Parekh, the main accused in the 2001 stock market scam. A bench headed by Justice Altamas Kabir after brief hearing gave two weeks time to the company to file an affidavit giving details about their sale transactions in the market between May to June 2006 after the sectoral tribunal had on May 8, 2006 allowed it to trade only through the stock exchanges and registered stock brokers in accordance with law and credit the sale proceeds in the bank account maintained with ICICI Bank. It had also directed the bank to put the money in a fixed deposit. Jermyn, a sub-account of FII Taib Bank, has challenged the Securities Appellate Tribunal (SAT) decision that upheld the ban imposed by the regulator on the ground that the action was justified as the investment company had close links with Dharmesh Doshi and Parekh, involved in the 2001 stock market scam. According to the company, it had been held that it was not a 'fit and proper' person even though there were no charges against it and its directors. Denying allegations against Doshi, Jermyn counsel Jayant Bhushan said that he was one of the directors of Jermyn UK and no charges had been framed against him in any court of law till now and the UK's Financial Services Authority was fully aware about the proceedings against Doshi in India. Besides, he had no association with Parekh, he added. While stating that SAT had made adverse remarks against its chairman Hugh Hamilton Andrews, it said that such findings were "perverse and arbitrary" and sought to malign his reputation by inferring upon his alleged closeness with Doshi due to his professional association. By Ms.Bobby Aanand, Metropolitan Jury.

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