SAT chief Rajaratnam quits

Securities Appellate Tribunal (SAT) 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 market regulator Sebi rejecting the suggestion from SAT to allow the "plea bargaining" of UBS for a possible amicable settlement and comes within days of Justice Rajaratnam excusing himself from the case.

Asked why he has put in his papers, Rajaratnam said: "I have no comments to offer. There is no difference with Sebi, and Sebi has co-operated 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 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 of UBS Securities, a FII, which was banned from issuing overseas derivative instruments for its alleged involvement in the May 17, 2004 market crash.

Sebi officials said they did not have any idea about the SAT chief's action, and clarified that the statement of its 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.