Arun Panchariya, president of Euram Bank Asia, sees licence revoked by DIFC authority
The president of Euram Bank Asia, the Dubai-based joint venture between Euram Bank and Pan Asia Advisors, has resigned after being implicated in a stock trading scandal in India.
Arun Panchariya has been stripped of his authorised individual status by the regulator for Dubai International Financial Centre (DIFC) after he was accused of trading irregularities by the Securities and Exchange Board of India.
Panchariya, who resigned as president of the bank on September 22, was accused of misleading Indian investors by artificially inflating the value of shares through an elaborate global operation.
“The victims of the events that are played out… are therefore the Indian investors who end up holding shares of companies that are injected with an artificial value due to the misleading acts of various entities and at prices that impart virtually no value,” noted a SEBI report.
The authority was forced to intervene “to prevent grievous injury to shareholders… [and] to urgently issue orders to protect the interests of investors,” the report said.
A spokesperson for DIFC regulatory body, the Dubai Financial Services Authority (DFSA), said Panchariya’s licence had been withdrawn on Sept 26.
He is “no longer licensed by the DFSA,” the spokesperson said.
Euram Bank Asia’s CEO Peter Siegl told Arabian Business the bank was “operating as normal and had not been affected” by the events leading up to its president’s resignation.
“This illegal activity took place in India in the local equity market… No clients were affected,” he said, adding the lender has retained its licence to trade in Dubai.
The events “will not have any impact” on the bank’s long-term plans in Dubai, Siegl said.
Panchariya’s company Pan Asia Advisors is based in London.