DoD may retain CSFB as adviser for VSNL

New Delhi, May 27: Department of Disinvestment appears to be in favour of continuing with Credit Suisse First Boston as global advisor for privatisation of Videsh Sanchar Nigam (VSNL) despite it being named by Sebi in connection with share price manipulation.

"Though Sebi has imposed a ban on the securities arm of CSFB, the thinking in the department is that it should not have any impact on the merchant banker’s role as advisor for VSNL," senior government officials said on condition of anonymity.

Sources, however, added that a final decision on continuance of CSFB would be taken only after Sebi gives its final order.

CSFB had questioned the Sebi verdict and appealed against the ban imposed by the regulator on its continuance in the market. A final verdict on the issue is still awaited.

Disinvestment department had earlier sought the law ministry’s opinion on the continuation of merchant bankers CSFB which has been appointed as VSNL advisor in consortium with SBI Caps.