Aug 05, 2009, 09.08 AM IST | Source: The Hindu Business Line.

IPO scam: Centurion Bank pays settlement charges

SEBI has accepted the proposed consent term of Centurion Bank of Punjab (now merged with HDFC Bank) in the IPO scam during 2003-05 for opening fictitious demat accounts, facilitating cornering of shares meant for retail individual investors, reports The Hindu Business Line.

IPO scam: Centurion Bank pays settlement charges

SEBI has accepted the proposed consent term of Centurion Bank of Punjab (now merged with HDFC Bank ) in the IPO scam during 2003-05 for opening fictitious demat accounts, facilitating cornering of shares meant for retail individual investors.

Accordingly, the applicant (Centurion Bank) without admitting or denying the charges has paid Rs 8 lakh towards settlement charges, said a SEBI order.

Consequently, the pending enquiry proceedings against the Centurion Bank stand was disposed of, SEBI said.

Fiat to Trivedi

SEBI also passed the final order against Mr Bhanuprasad D. Trivedi for his role in the IPO scam, restraining him from dealing in the securities market for one year.

The regulator didnt accept the explanation of Mr Trivedi that it was a case of lending and borrowing, with no relationship or dealings with key operators or financiers.

SEBI observed that the timing and manner of movement of shares and funds from and to Roopalben Panchal (key operator) and Jayesh Khandwala (financier) cannot be associated with normal lending of money.

Further, there were back-to-back transfer of exact quantity of securities and funds among the three, and such transfers do not happen in the absence of any understanding among the parties, SEBI observed.

Mr Trivedi was part of the fraud to corner IPO shares of IDFC and Sasken Communication meant for retail investors and facilitated the financier to make ill-gotten gains, the SEBI order said, reports The Hindu Business Line.

READ MORE ON  SEBI, Centurion Bank of Punjab, IPO
Set email alert for

ADS BY GOOGLE

Buy & sell politicians on Power Play
- the political stock exchange

Price Update

Rahul Gandhi

581.24 -7.07 -1.20%

173173

Bought today

358982

Sold today

0.62%

User holding

video of the day

Chandra says satisfied with TCS' FY14, FY15 to be better

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.