The UBS-StanChart deal will well go down as one of the very few deals that went bust this past year! After days of regulatory trouble ‑ just a week before the contract expired ‑ StanChart's finally called it off, reports CNBC-TV18’s Pooja Meswani.

This is not quite how things panned out for StanChart Mutual Fund's deal with UBS which has now officially been called off. But only a year back this USD 120 million deal was touted to be one of the industry's biggest and best.

UBS was chosen the preferred suitor from a list that included Morgan Stanley, Aviva, Deutsche Bank, and ING. While UBS did not offer the highest price, its winning card was its promise of continuing with the incumbent management. The deal was expected to close by the year-end, subject to regulatory approval.

A routine matter one would say, but that's just where the deal came to a grinding halt. That was on account of a pending RBI approval. Sources said RBI was not in favour of the deal because of an ongoing money laundering case where UBS is allegedly suspected to be the banker.

With the deal in a limbo, StanChart had few options. Its contract with UBS was expiring on Jaunuary 5. The clock was also ticking for it to wind up the unit, since India is the only market where StanChart has an asset management business.

Finally on Friday when StanChart called off the deal, many in the industry stated that it was not about whether but when it would do so. UBS has been tight-lipped about StanChart’s move. StanChart is now where it was last year, scouting for buyers for its mutual fund.

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