SEBI member G Mohan Gopal has demanded that the regulator make public the report of its committee formed by Chairman C B Bhave on “conflict of interest”, in ascertaining the role of National Securities Depository Ltd (NSDL) in IPO scam.
Expressing dissent to the decision taken by the SEBI Board on Monday to seek a legal opinion on reviewing the committee’s decision on the subject, Gopal said, “I am of the view that legal procedure should be followed. But the order of the committee should be made public first.”
Gopal made his views known at the SEBI meeting here on Monday on the report of the committee that looked into the role of NSDL, where Bhave was the Chairman at the time of cornering of shares meant for retail investors in IPOs between 2003-05. He was categorical in questioning the role of SEBI and felt that instead the issue could be referred to the appellate body SAT.
SEBI in its board meeting on Monday decided to seek the opinion of a legal expert on whether it can examine whether the committee had acted within the framework of the terms of reference.
Order relates to the role of NSDL in the IPO scam during 2003-2005, when over 50,000 benami accounts were opened with the depository to corner the shares meant for retail investors in public offering. During that period, NSDL was headed by Bhave.
While appointing Bhave as SEBI Chairman in February 2008, the Government had said that matters in respect of NSDL would be handled by a team of non-wholetime members of SEBI. The regulator had set up a three-member committee comprising G Mohan Gopal, former RBI Deputy Governor V Leeladhar and Corporate Affairs Secretary Anurag Goel.
Goel left the committee later and the two-member committee passed an order on NSDL in December, the details of which are yet to be made public.