Dubai bank chief resigns over India stock scandal

Arun Panchariya, president of Euram Bank Asia, sees licence revoked by DIFC authority
Dubai bank chief resigns over India stock scandal
Arun Panchariya is no longer licensed by DIFC, the free zones regulatory authority said
By Shane McGinley
Mon 03 Oct 2011 11:22 AM

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Services Authority (DFSA), said Panchariya’s licence had been withdrawn on Sept

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.  

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