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SEBI allows 3 more firms to open demat account

However, further investigations would continue into IPO scam, which relates to opening of multiple demat accounts.
None | By Press Trust of India, Mumbai
PUBLISHED ON JUL 29, 2006 02:17 PM IST

Market regulator SEBI on Friday lifted its prohibitive orders that barred IL & FS, IDBI and ING Vysya Bank from opening fresh demat accounts in the wake of an IPO scam detected early this year.

However, further investigations would continue into the IPO scam, which relates to opening of multiple demat accounts by these depository participants allowing some individuals to corner the retail portion of public issues.

TC Nair, Whole Time Member, SEBI in his post hearing order issued on Friday directed lifting of the prohibition on opening fresh demat accounts by the depository participants (DPs) Infrastructure Leasing and Financial Services Ltd (IL& FS), IDBI and ING Vysya Bank, a Sebi release said.

"Meanwhile all issues and contentions were being considered by the Enquiry Officer appointed by SEBI and were to be decided in subsequent proceedings pursuant to his report," it added.

SEBI in its order dated April 27, 2006 had directed the above DPs not to open fresh demat accounts till further orders. Thereafter, an opportunity of hearing was granted to these DPs, Sebi said.

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