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Societe Generale not to issue PNs

Societe Generale not to issue PNs

Mumbai: Capital markets regulator Securities and Exchange Board of India (Sebi) on Friday barred France-based Societe Generale SA from dealing with participatory notes (PNs) in India as it failed to provide “true, fair and complete details" of PNs and offshore derivatives instruments (ODIs) it had issued to Hythe Securities Ltd with Reliance Communications Ltd as the underlying securities.

“As per the monthly reports filed by SG (Societe Generale) with Sebi till date, it was seen that SG had 48 transactions with Hythe, out of which it admitted having misreported in respect of 14 of these transactions," Sebi’s whole time director K.M. Abraham said in an order late on Friday.

The ban will be in force until “Sebi is satisfied that it (Societe Generale) has the organizational resolve and capability demonstrable vide systems, processes and controls to provide true, accurate and complete picture of its ODIs/PNs transactions as envisaged under the FII (Foreign Institutional Investor) regulations and the reporting requirements therein." In December, Sebi had issued a similar notice to Barclays Bank Plc on the same case.

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