SEBI asks depositories, DPs to cough up Rs115.81 crore for scam involvement
21 Nov 2006
The Securities and Exchange Board of India (SEBI) has asked the National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL), besides eight depository participants to pay up Rs115.81 crore for involvement in the IPO scam that was uncovered last year.
The market regulator has directed NSDL, CDSL and eight depository participants (DPs) to return Rs115.81 crore in six months. The DPs include Karvy, HDFC Bank, Khandwala Securities, IDBI Bank, Jhaveri Securities, ING Vysya Bank, PR Stock Broking and Pratik Stock Vision.
In his disgorgement order, SEBI member G Anantharaman said the affected parties were free to seek greater compensation than what has been quantified.
The interim order related to investigations by SEBI into share allotment in the initial public offer of Yes Bank in 2005 and IPOs by other companies.
The regulator had banned 13 entities from trading in the bank's stock, after it detected irregularities in the process.
SEBI had said certain firms cornered IPO shares reserved for retail applicants with thousands of fictitious applications for small amounts that were then transferred to financiers who sold them on the first day of listing for a profit.
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