Indiabulls Sec gets reprieve
Mumbai: The Securities and Exchange Board of India has relented on its trading ban order against Indiabulls Securities in the IPO scam until further directions. A few hours ago it had banned the company and several other market intermediaries.

The order was put on hold after Indiabulls contested it. Yesterday the chairman of Indiabulls, Sameer Ghelaut, met the SEBI Whole-Time Member, G. Anantharaman, who issued the order yesterday. SEBI said the reversal of the trading ban on Indiabulls came on the basis of oral and written submissions made by Ghelaut.

Indiabulls said it made submissions regarding the receipt of 13,939 shares of TCS after its IPO from 559 different accounts. It said the account holders transferred TCS shares to Indiabulls Securities' client margin account for their trading purposes for meeting their margin requirements as per the stock exchange rules and regulations. On the sales of the TCS shares, the company said the proceeds of the sales were transferred by Indiabulls Securities to the same individual client accounts which had transferred these shares to Indiabulls client margin account for meeting margin requirements.

Indiabulls Financial Services said Indiabulls Securities or any of its group companies had absolutely no role in either the IPO application of these clients or any economic interest or any other interest whatsoever in the sale proceeds arising out of the sale of 13,939 shares or any financing of any of the IPO applications of the clients.

These clients are based out of 81 different cities in India.
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Karvy denies SEBI charges
Hyderabad: The Karvy Group has denied charges made by the Securities and Exchange Board of India in its interim order barring the group from depository participant and other services. Karvy Stock Broking (KSBL) named as one of the 85 entities that acted as a financer of the master accountholders said it had never financed any IPO customer till date. Neither KSBL nor any of Karvy associate companies financed the said investor for the issue.

In a press release Karvy said, "This investor has a secondary market trading account with KSBL Mumbai branch, and he had transferred shares into our pool account on the day the securities were listed and sold the shares in the market. SEBI appears to have mistaken the transfer of securities into our pool account by a customer, who was subsequently paid the proceeds, as a wrongful act of Karvy," the release said.

Karvy said that SEBI's allusion that the certificates of introduction, issued by bankers for DP accounts, were forged and were issued with the connivance of Karvy was baseless and simply based on the concerned bank along with the said individuals, who seemed to have acted in collusion and now shifting the blame. The fact that the collusion of the banks with these individuals can be borne out of the fact that all these fictitious individuals were given loans and the refunds credited to the said accounts. If these bank certificates were issued without the knowledge of the concerned bank, then how did these banks issue loans to such applicants without a bank account and how did they credit the refunds, either given piecemeal or in a consolidated form, to respective loan accounts?" it said.

Karvy said, "Should Karvy have acted with a malafide intent or they have been benefited unduly, they should have received the benefit either by way of shares or funds by way of profit realised on these shares. SEBI has all means to verify whether such benefits have been received and has not identified even a single case of such benefits being accrued. Karvy has not received any undue benefits whatsoever."
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Sanghi Ind to raise Rs.1,500-cr
Hyderabad: Sanghi Industries has decided to raise funds not exceeding Rs 1,500 crore by issue of equity shares or convertible instruments or foreign currency convertible bonds or convertible warrants or American Depository Receipts or Global Depository Receipts.
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Emkay Shares debuts at 23 per cent premium
Mumbai: Emkay Shares and Stock Brokers listed on the bourses at a 23.3 per cent premium at Rs148, compared to the issue price of Rs120 per share. The shares, which fell below the issue price to Rs115 during intra-day, clawed back to end at Rs136.75, a premium of 16.75 per cent. The issue was subscribed 7.82 times. Emkay Shares issued 62.5-lakh equity shares through the IPO.
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