SEBI''s role on GTB scrip questioned

Mumbai: The Securities and Exchange Board of India's (SEBI) role in the Global Trust Bank (GTB) scrip matter came under scrutiny at the market regulator's board meeting here today.

According to a source present at the board meeting, finance ministry nominees asked the regulator to explain how some entities, which were previously barred from trading in GTB shares, were allowed to do so.

Ministry officials also asked SEBI to identify the people buying the scrip now, and are learnt to have directed SEBI to expedite its investigations into the GTB scrip's movements. A preliminary report is expected to be submitted within the next 15 days.

There have been extraordinary movements in the price of the scrip in the last few weeks and a large number of entities, including some based in Mauritius, sold their holdings. The purchasers have largely been retail investors.