Anil Ambani’s Reliance Group named in London case
Two UBS bankers backed the creation of an illegal offshore investment vehicle to allow Indian billionaire Anil Ambani to invest in India stocks, UK market & financial services regulator told a London tribunal.
The claim has been made in a case brought against UBS's former wealth management executive Sachin Karpe and the bank's recently deceased Kurt Kumschick. Karpe allegedly misled the UBS about the true ownership of the Mauritius-based investment vehicle, called Pleuri.
The evidence against Mr. Kumschick was taken from his email, dated March 20, 2007, which reads, "I would support the decision to go ahead. the client is a mega client for wealth management... Our mega client is among the top three industrialists in India with ablility to interact with regulators and authorities as required."
The FSA is seeking to impose a fine of £1.25 million on Sachin Karpe.
It may be noted here that Indian law doesn't allow Indians to invest in stocks via overseas subsidiaries.
However, the Reliance Group claims that the case has already been closed by the Indian regulators under the consent order framework in January this year.
