Roopalben Nareshbhai Panchal, the key figure in the multi-crore IPO allotment scam unearthed by SEBI recently, along with her associates and financiers made a profit of around Rs32 crore from the issues of Yes Bank and IDFC, according to CBI. This was disclosed by the investigation agency after conducting raids at multiple locations yesterday.
Roopalben Panchal and associates including a private company called Sugandh Estates cornered the shares of IDFC and Yes Bank by making thousands of applications under the retail category. They opened thousands of bank accounts and demat accounts using false identities with the connivance of bank employees and employees of a depository participant.
It was disclosed earlier by the SEBI that the group cornered more than 10 lakh shares of Yes Bank and more than 1 crore shares of IDFC. These shares were sold off the in the secondary market for a handsome profit, immediately after listing.
SEBI handed over the case to the CBI for further investigation. The agency conducted raids at 27 different locations in Ahmedabad, Mumbai and Delhi yesterday. Roopalben Panchal and her husband have been arrested and Rs1 crore in cash have been recovered.
CBI has also arrested some stock brokers based in Ahmedabad and some officials of the banks mentioned by SEBI in the scam. Those who have been arrested would be produced before a court in Ahmedabad today.
also see : Big financiers
behind Roopalben: CBI