The Hindu Business Line : SEBI extends ban on Samir Arora to 5 years

THE Securities and Exchange Board of India has extended the ban on Mr Samir Arora, former Chief Investment Officer of Alliance Capital Mutual Fund, from dealing in securities to a period of five years. This period is inclusive of the interim ban that Mr Arora has been serving since August 2003.

Mr Arora has been found guilty of professional misconduct inviting action, fraudulent and unfair trade practices relating to securities market and insider trading, according to the SEBI ruling. The order has taken into account the responses given by Mr Arora to the show cause notice that SEBI had served on him.

The order states, "It is the mandate of SEBI to protect the interest of investors and the safety and integrity of the securities market. If market participants, intermediaries and more importantly even professionals commit serious violations, they ought to be dealt with severely by the regulator in the larger interest even on the basis of preponderance of evidence." The order also states that strict action against Mr Arora's misdeed is in order to act as "a deterrent for others of similar disposition."

When contacted, Mr Arora, who is currently in New Delhi, told Business Line that he was "shocked" at the duration of the ban. "The language of the order is extremely vindictive and personal," he said. For example, he pointed out that the order states "calculation of combined holdings requires simple addition, which I presume is not beyond Shri Arora's capability."

"How can a legal order make a statement like this? Are they mocking my educational and intellectual qualifications? The objective is to bias the system completely against me."

Mr Arora is approaching the Securities Appellate Tribunal and his team has around 45 days to make its case. "We have the highest faith in the judicial system and we will be invoking appropriate remedies. "Ultimately the rule of law will prevail."

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SEBI extends ban on Samir Arora to 5 years