Luxembourg's financial market watchdog has liquidated the Luxembourg Investment Fund, which was exposed to the Madoff Ponzi scheme fraud that hit private bank clients and other institutions, media reports said.

The CSSF, which last month took the same action for the Luxalpha fund and the Herald fund, withdrew the fund from its official list in March.

The regulator said liquidators would have to inform investors and creditors of the liquidation process at least once a year, with a first meeting to be held before the end of November.

"The judgment notes the carriers of shares of Luxembourg Investment Fund are to be regarded as shareholders who will share the profit of liquidation," the regulator said in its statement.

The fund's depositary bank is the Luxembourg branch of UBS.

Investor activist group Deminor has filed legal complaints against both UBS and HSBC for allegedly neglecting clients who invested in Madoff-related products.

Wall Street rogue investor Bernard Madoff is awaiting sentencing for a purported $65 billion fraud that drew in new investors to pay off existing ones.