SEBI not to ban participatory notes
By Our Markets Bureau | 19 May 2005
New Delhi: Securities and Exchange Board of India (SEBI) chairman M Damodaran has said that there are no plans to ban participatory notes.
Speaking to news persons on the sidelines of the CII annual session, Damodaran justified SEBI's decision on not disclosing the names of the entities to whom show-cause notices were issued for the market crash of May 17, 2004. He maintained that this should not be construed as "lack of transparency" on the part of SEBI.
"There are 12 entities that had been issued notices. Proceedings are at various stages. Orders will be passed. What these orders are? Will they hold the explanations as absolutely satisfactory? Will they say the explanations are less than satisfactory? I don't know," Damodaran said.
He said that SEBI would not talk about a company because it is possible that the company concerned may come up with an extremely satisfactory explanation.
