The Securities Appellate Tribunal chief Justice Kumar Rajaratnam has resigned amid controversy over the UBS Securities case relating to the stock market crash last year.
The resignation coincides with the Securities and Exchange Board of India rejecting the suggestion from SAT to allow UBS' 'plea bargaining' for a possible amicable settlement and comes within days of Justice Rajaratnam excusing himself from the case.
Asked as to why he has put in his papers, Rajaratnam told PTI: "I have no comments to offer. There is no difference with Sebi, and Sebi has cooperated with us. I do my judicial duties and they (Sebi) do theirs. UBS issues will go in accordance with the law," he said on whether his action had anything to do with the differences between SAT and Sebi over the UBS case.
During the course of hearing on July 18, Justice Rajaratnam had suggested that Sebi consider the 'plea bargaining' and a penalty of Rs 50 crore (Rs 500 million) on UBS Securities, a FII, which was banned from issuing Overseas Derivative Instruments (ODIs) for its alleged involvement in May 17, 2004 stock market crash.
Sebi officials said they did not have any idea about the SAT chief's action and clarified that the statement of market regulator's counsel Rohit Kapadia to the media could not be purported to be from Sebi.
"Sebi spokesperson has already clarified this. In fact, Sebi has sought adjournment from the court on the UBS case as it was seeking a new senior counsel," a Sebi official said.