MUMBAI, June 9: The administrator for CRB Mutual Fund would move the court to seek opinion on deliveries pertaining to the fund that had taken place before June 3.

According to the Securities and Exchange Board of India (SEBI), decision of the court was necessary for considering the validity of the transactions and prescribing certification process, along with the period for which transactions are to be re-opened even if transfer has already been affected.

SEBI and stock exchanges have reached a consensus that in the case of CRB Mutual Fund a transaction entered into by the mutual fund pending delivery or for which delivery has not been received or given by the custodian on or after June 3 should be treated as bad delivery for the time being.

In case money has already been paid by the buyers and received by the stock exchanges, it may be in the interest of the unit holders if it is transferred to the administrator to satisfy the claims of the unit holders. ``This is a matter in which the administrator will, however, seek suitable orders from the court,'' SEBI said.

On this stand, the administrator also has expressed his intentions to work on clarifications received from the courts. ``After receiving courts clarifications, the stock exchange's will be advised about release of securities or the funds to the buyers,'' said A K Menon, the administrator.In its meeting with the Inter exchange co-ordination committee today, SEBI said ``in the case of CRB Capital Markets the Reserve Bank of India may like to consider similar action taken through the administrator.''

SEBI has further decided that the investment in securities listed on any of the stock exchanges as made by any of the listed and or unlisted companies which is a CRB group company and or in which CRB group has controlling interest will also need to be subjected to attestation.

In addition to this it has also been decided that all deliveries in case of CRB shares or group company shares taken place prior to June 3, 1997 (the day of the appointment of the administrator A K Menon by SEBI) the decision of the court may be necessary for considering the validity of the transactions.

The administrator has emphasised the need for setting up a valuation entity , that is a chartered accountant firm to evaluate the CRB group assets which have been seized by the administrator and his team.

In the meantime, after having made a representation to the RBI, CRB Daewoo Securities has sent a copy of representation to SEBI, claiming that they are not a CRB group company as CRB holds only 24 % shares and two foreign companies hold equity of 76 %.

In this regard SEBI would act on this piece of information after getting RBI decision on this issue, and accordingly inform the stock exchanges about the matter.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.