Panchariyas fined in Dubai on Sebi act

Satish Panchariya has contravened Article 66 of the Regulatory Law by submitting an inaccurate form.

Dubai Financial Services Authority (DFSA) has fined Arun Panchariya,former Euram Bank Asia President and his brother Satish Panchariya $11,978 (44,000 dirhams) each for not disclosing that Indian market regulator SEBI had taken disciplinary action against companies related to Satish.

A DFSA investigation found that the Panchariya brothers,while seeking permission to join as directors of an authorised firm in the Dubai International Financial Centre had not furnished information about the probes done by SEBI in the Indian firms – Alka India Ltd,Panchariya Textiles and Gujarat Texind.

The Dubai regulator found that “Satish Panchariya has contravened Article 66 of the Regulatory Law by submitting an inaccurate form”.

Further,he failed to disclose the “material events in the SEBI investigation and disciplinary actions; namely the imposition of financial penalties,two appeals against SEBI’s order and the results of the appeals”. It said the Panchariyas did not share the information even after they were authorised to be appointed as key functionaries in a Dubai firm in November 2009. DFSA Chief Executive Paul Koster said,”It is imperative that authorised firms and authorised individuals are open and cooperate fully with the DFSA. Accordingly,the DFSA will take action where firms and individuals have breached these requirements.”