So at last SEBI cracked its silence on this half-year old issue and have said more than less much awaited words on this fraud.
This was well planned scam which came to lighet after crores of rupees were already exchanged and fraudulent had gone out of scope. It highlighted many drawbacks of current demat system in India and still there are no guidelines published in same regard.
SEBI has published 252-page order in which it has named few market participants blaming them to corner the retail shares in at least 21 IPOs. These names include – Anagram Securities and Karvy Stock Broking.
This statement was supposed to affect market heavily.
SEBI cracks the whip on biggies for IPO scam
Stock market regulator Securities and Exchange Board of India (SEBI) dropped a bombshell late on Thursday evening through an order which indicted some of the biggest names in the financial markets for their role in the IPO scam which came to light in mid-December last year.
Other than the now infamous Roopalben Panchal, SEBI has barred Indiabulls Securities, Anagram Securities and Karvy Stock Broking from the market. The Karvy group of companies — Karvy Stock Broking, Karvy Computershare, Karvy Investor Services, Karvy Consultants, who are believed to have acted as the main conduits in the IPO scam — has been directed not to take up any fresh businesses, the SEBI order said.
Indiabulls alone accounts for about 6 per cent of the retail broking business in the market. Customers dealing in the cash segment may not be able to trade in the market.