State Bank of India (India) said on Monday it has not received any official communication from the regulators, rejecting its proposed joint venture with French financial services major, Societe Generale.
"We have no official communication from the regulators or any other agency on this matter. It may or may not be true," State Bank's Chief General Manager, New Businesses, Arundhati Bhattacharya said.
Media reports said on Monday that the regulators have rejected the JV proposal citing the violation of trading norms and security scams by SG in overseas markets.
SBI had entered into an agreement with Societe Generale Securities Services, a division of Societe Generale Group, in June this year to provide a range of security services like reporting, corporate actions, dividends collection and distribution, tax reclaim services among others.
Following the signing of the pact, SBI is presently waiting for the Reserve Bank of India approval while Societe Generale's proposal is pending with the Foreign Investment promotion Board.
According to the signed agreement, SBI will hold a majority 65 per cent stake in the JV while the French major will hold the remaining stake.
Also, both parties had agreed that the CEO of the new company would be from SBI and the Deputy CEO from the French firm.
Attempts to reach Societe Generale officials failed.
