Ipo Scam

SEBI uncovers scam in YES rim IPO parcelling Bans 13 investors from merchandise Our Bureau Mumbai , Dec. 15 THE capital market regulator, SEBI, has unearthed a large-scale multiple application program case in the recent YES posit IPO and prohibited 13 investors from trading in the banks sh ars with immediate effect. These investors have manipulated allotment of shares by enterprise move more than 7,500 `benami depository accounts. They gained Rs 1.7 crore by this treatment on the jump trading day of the IPO, according to a SEBI interim bon ton issued today. SEBI has also referred the case to the Reserve Bank of India seeking probe into the role of the Chennai-based Bharat Overseas Bank Ltd and Vijaya Bank in opening move the bank accounts of these benami entities and funding their IPO applications. The modus operandi gibe to SEBI report, an investor named Ms Roopalben Panchal had employ for 1,050 YES Bank shares and paid the application currency of Rs 47,250. Apparently she did non receive any allotment. Later she legitimate 150 shares from each one from 6,315 allottees through off-market transfer. Thus, she authentic 9,47,250 shares in aggregate, which she exchange through fin other entities on the day of listing.

another(prenominal) investor, Sugandh Estates and Investments P Ltd, also received a large tot of shares by similar manner of manipulation and gained about Rs 32 lakh through opening 1,315 benami accounts. Investigation by SEBI has tack depository participant, Karvy-DP, which was used by these companies to open 7,630 benami dematerialised accounts (which served as a conduit for two entities) failing in the `know your clien t norms in the issue. SEBI has asked NSDL t! o narrow comprehensive inspection of Karvy-DP to conquer whether it has implemented the `know your client norms that DPs are required to follow. Further see needed SEBI said: Further probe is required for examining the systemic fault, if any, of the registrar to the issue - Karvy Computer Shares Pvt Ltd - and...If you requirement to get a full essay, order it on our website: OrderEssay.net

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