Market regulator SEBI has freed the HDFC Bank in the initial public offering (IPO) scam case on payment of consent fee of Rs 1 lakh.
The consent order was passed by SEBI in the IPO case for opening demat accounts with common addresses in fictitious names with the intention of cornering shares meant for retail investors during 2003-05.
Earlier on preliminary investigations SEBI found that "HDFC Bank...Opened several such demat accounts," violating various regulations.
SEBI had also in its order in April 2006 directed the bank not to open fresh demat accounts. The order, however, was revoked in November the same year.
While the proceeding were on, HDFC Bank proposed settlement of the issue through a consent order which was accepted by the committee of SEBI.