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Tuesday, Oct 22, 2019

IPO scam: SEBI bars operators, financiers

The regulator asked 12 depository participants not to open fresh accounts.

india Updated: Apr 28, 2006 12:27 IST
HT Correspondent
HT Correspondent

Market regulator SEBI on Thursday charged Indiabulls, Karvy Stockbroking, Anagram Securities and over 20 other key operators with “abusive practices” in initial public offerings (IPOs) of various companies and barred them from market operations. It also barred 85 financiers of key operators from the stock market.

The regulator, which investigated malpractices in 105 IPOs during 2003-05 (beginning with Maruti issue to the Suzlon IPO), asked 12 depository participants not to open fresh accounts.

HDFC Bank, IDBI Bank, Central Bank, ING Vysya Bank, IL&FS and Motilal Oswal have been asked not to open fresh demat accounts.

While initiating quasi-judicial proceedings against two depository participants (Karvy and Pratik DP), it told them to stop all accounts till further notice.

The interim order has barred Roopalben Panchal, accused in Yes Bank and IDFC IPO scams, from dealing in securities market. NSDL and CSDL have been directed not to entertain demat accounts that were used for the IPO allotments.

The barred entities have 15 days to appeal against the order. SEBI findings, prima facie, reveal violations of serious nature by the key operators, their financiers, concerned depository participants and the depositories.

First Published: Apr 28, 2006 12:27 IST

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