IGF Urges Sebi, RBI To Disclose OBC-GTB Merger Details

Mumbai, July 30 | Updated: Jul 31 2004, 06:11am hrs
The Investors Grievances Forum (IGF) has demanded that the Centre along with both the regulators the RBI and Sebi should disclose the details with respect to merger of the Global Trust Bank (GTB) with Oriental Bank of Commerce (OBC). In addition, IGF has also urged the regulators to make public all the details of transactions taken place on the GTB counter between June 1, 2004 and July 28 2004.

While addressing a press conference, Kirit Somaiya, president, IGF said: All the details with respect to GTB merger the correspondence, recommendations, decisions taken by agencies and transactions details of GTB counters between from June 1, to July 28, 2004 should be disclosed.

Mr Somaiya said that the Centre and the RBI should come out clean and disclose all the dealings/details by these agencies in last eight weeks since these regulators emphasise on good governance, corporate governance and transparency. Mr Somaiya also alleged that the decision to merge GTB with OBC was taken before the announcement of moratorium on July 24. He also questioned as to why the moratorium on GTBs operations and its merger with OBC were not declared simultaneously Was it to accommodate some investors to dispose of their GTB holdings, he added.

Mr Somaiya informed that an overseas corporate body (OCB) holding 9.69 per cent of the GTB shares offloaded all of its holding in the market in the month of June and July 2004 before the moratorium on GTB and its merger was announced. Sebi needs to investigate these transactions, he added.