IPO scam: SC slap forces SEBI to re-think probe report

The Securities and Exchange Board of India, stung into reversing an earlier decision after adverse remarks by the Supreme Court, on Monday told the court that it was ready to reconsider the report of a high-powered committee which probed the IPO scam of 2005-2006 and the alleged inaction of the National Securities Depository Ltd at the time.

Till recently, SEBI had stuck to its stand that the report was 'non-est' (non-existing) and had virtually exonerated NSDL, then chaired by C B Bhave, who later became the SEBI chairman till his retirement in February. SEBI took the decision to trash the probe committee's report under Bhave's leadership.

During the hearing today, attorney general Goolam E Vahanvati, representing SEBI, informed the apex court that the regulator in its board meeting held on 26 April had decided to reconsider the report with a view to accept it.

The market regulator, in its affidavit before the apex court, said, ''The board of SEBI, pursuant to the Supreme Court order of 28 March 2011, had reconsidered the order of the special committee dated 4 December 2008 at its meeting held on 26 April 2011.''

Prashant Bhushan, counsel appearing for the NGO, Social Action for Manav Adhikar which had filed a special leave petition against the SEBI stand, demanded stronger action. However, the Supreme Court bench comprising justices R V Raveendran and A K Patnaik seemed to be satisfied with SEBI's stand.

The bench has ordered listing of the matter in August for further hearing.