StanChart IDR locked in lower circuit on New York worries
Standard Chartered Plc’s Indian depositary receipts dropped 20 per cent on Tuesday and were locked in lower circuit towards the close of the market.
By ET Online |
NEW DELHI: NEW DELHI: Standard Chartered Plc’s Indian depositary receipts dropped 20 per cent on Tuesday and were locked in lower circuit towards the close of the market, after New York’s state regulator threatened to strip the lender of its state banking license, saying it had hid $250 billion in Iran-related transactions.
The receipts closed locked in lower circuit at Rs 82.95 on the National Stock Exchange, down 20 per cent.
On the London Stock Exchange, Standard Chartered shares have slipped to their 52-week low at 1120.12 pence. At 04:20 pm, shares were trading 1122 pence, down 23.71 per cent.
“New York’s top bank regulator threatened to strip the state banking license of Standard Chartered Plc, saying it was a ‘rogue institution’ that hid $250 billion in transactions tied to Iran, in violation of US law,” ET reported. “The New York State Department of Financial Services on Monday alleged the bank ‘schemed’ with the Iranian government and hid from law enforcement officials 60,000 secret transactions in order to generate hundreds of millions of dollars in fees.”
At the same time, it exposed the US banking system to terrorists, drug traffickers and corrupt states, the regulator added.
“Iran figures among the countries barred by the US for doing any business by the individuals and entities," PTI reported today.
Deven Choksey, MD at KR Choksey Securities, is of the view that the receipts will not be affected beyond a point despite the bad news hovering.
In a reply to the stock exchange, posted on the NSE website, the StanChart group said it is conducting a review of its historical US sanctions compliance and is discussing that review with US enforcement agencies and regulators.
“Standard Chartered Bank said the transaction under review does not present the 'full and accurate' picture and over 99.9 per cent of its Iran-related business was in compliance with the relevant regulations," the PTI report added.
Standard Chartered is the third British bank to be ensnared in US law enforcement probes this summer, ET reported, adding that Barclays Plc agreed to pay $453 million to settle US and UK probes that it rigged a global benchmark in June.
The receipts closed locked in lower circuit at Rs 82.95 on the National Stock Exchange, down 20 per cent.
On the London Stock Exchange, Standard Chartered shares have slipped to their 52-week low at 1120.12 pence. At 04:20 pm, shares were trading 1122 pence, down 23.71 per cent.
“New York’s top bank regulator threatened to strip the state banking license of Standard Chartered Plc, saying it was a ‘rogue institution’ that hid $250 billion in transactions tied to Iran, in violation of US law,” ET reported. “The New York State Department of Financial Services on Monday alleged the bank ‘schemed’ with the Iranian government and hid from law enforcement officials 60,000 secret transactions in order to generate hundreds of millions of dollars in fees.”
At the same time, it exposed the US banking system to terrorists, drug traffickers and corrupt states, the regulator added.
“Iran figures among the countries barred by the US for doing any business by the individuals and entities," PTI reported today.
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Deven Choksey, MD at KR Choksey Securities, is of the view that the receipts will not be affected beyond a point despite the bad news hovering.
In a reply to the stock exchange, posted on the NSE website, the StanChart group said it is conducting a review of its historical US sanctions compliance and is discussing that review with US enforcement agencies and regulators.
“Standard Chartered Bank said the transaction under review does not present the 'full and accurate' picture and over 99.9 per cent of its Iran-related business was in compliance with the relevant regulations," the PTI report added.
Standard Chartered is the third British bank to be ensnared in US law enforcement probes this summer, ET reported, adding that Barclays Plc agreed to pay $453 million to settle US and UK probes that it rigged a global benchmark in June.
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