Mumbai, Dec. 22 (PTI): The Securities and Exchange Board of India (Sebi) today imposed a penalty of Rs 10 lakh on foreign institutional investor (FII) HSBC Investment Services (Netherlands) NV for failing to furnish information on issuance of participatory notes (PNs) according to Sebi norms.

FIIs are required to submit the report of issuance of PNs on a monthly basis within a week of the end of the month, which HSBC NV failed to do.

HSBC Investment did not disclose the location where the participatory notes were designed, the point at which its broker (HSBC Securities) was informed about the issuance of PNs and the particulars of clients’ details during July to October 2002.

Sebi also did not get any information about the sequence of events, which led to the issuance of participatory issues to UBS Global Management and Union Invest, Sebi adjudicating officer D. Sura Reddy said.

Sebi investigations found that HSBC NV issued PNs against the purchase/sale of BPCL shares during August-September 2002 to UBS Global Management and Union Invest but it was not reported to Sebi.

On September 2002, the price of the BPCL scrip fell from around Rs 253 to Rs 202, which was reported in a leading daily as part of a bear operation in the shares of BPCL, thus prompting a Sebi investigation.