Credit Suisse, Deutsche Sec offload shares of StanChart IDR

Standard Chartered IDR (Indian Depositiary receipts) - only listed IDR on Indian stock exchanges - have seen heavy sell-off on Monday due to no arbitrage opportunity. A share closed down 17.53% at Rs 94.55.

Investors who were hoping to profit from the difference in the price of the Standard Chartered stock (on London and Hong Kong bourses) and its Indian Depository Receipt (IDRs) have been caught unawares by the latest Sebi ruling on the IDR convertibility. The stock market regulator has said that Standard Chartered need not convert the IDRs into the underlying shares, since there was enough liquidity in the IDRs. The one-year lock-in for IDR holders was to end on June 11, making the IDRs eligible for conversion into underlying. But that will no longer be the case in the light of the Sebi ruling. Credit Suisse (Singapore) Limited have sold 3,498,404 94.37 shares of the company at Rs 94.37 a share and 2,051,004 shares at Rs 97.45. Deutsche Securities Mauritius offloaded 13 lakh shares at Rs 96.32 on Monday. Swiss Finance Corporation (Mauritius) sold 45,45,367 equity shares at Rs 95.29 and 70,05,716 shares at Rs 95.70. However, Swiss Finance bought 7.5 lakh shares at Rs 93.65 a share yesterday. Only ICICI Prudential MF (Dynamic Fund) has bought nearly 30 lakh shares at Rs 96.98. At 11:55 hours the share was trading at Rs 97.80, up 3.44%. It was with volume of 4,403,850 shares, an increase of 490.56% compared to its 30-day average of 745,709 shares.