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Sebi to probe IPO scam afresh

Market regulator Securities and Exchange Board of India (Sebi) is set to reopen its probe into multi-crore IPO scam of 2003-2006, after more than a year of declaring as 'null and void' the charges made by its own committee against depository NSDL and others in the matter.

business Updated: Jun 26, 2011 22:43 IST

Market regulator Securities and Exchange Board of India (Sebi) is set to reopen its probe into multi-crore IPO scam of 2003-2006, after more than a year of declaring as 'null and void' the charges made by its own committee against depository NSDL and others in the matter.

Sebi will discuss afresh in its next board meeting on June 30 a two-member committee's investigation report on the scam, except the part where the market regulator itself was accused of failing in its regulatory role, sources told PTI.

Still, this will be probably the first instance of Sebi revisiting an issue previously dismissed by it, as also an unprecedented case of the regulator being open to a report, where its own role has been criticised.

The committee, comprising of the then Sebi board members G Mohan Gopal and V Leeladhar, was constituted in 2008 to look into NSDL's role in the IPO scam and it found various lapses on the part of the depository, as also the Sebi itself.

Sebi declared the findings as 'null and void' on the ground that the committee had breached its mandate in making these charges. However, Sebi has now agreed to revisit the matter after an intervention by the Supreme Court.

Commenting on the case, Sebi's former executive director Sandeep Parekh said Sebi should be open to self criticism.