SEBI passes order in IPO irregularities case

The Securities and Exchange Board of India has passed an order in the IPO irregularities case, which occurred in 2005 when the Yes Bank IPO was filed.

In 2005, SEBI had disclosed Roopalben Panchal and Sugandh Estates, two Gujarat-based entities for having almost 8000 demat and bank accounts, which were used to corner shares in the Yes Bank IPO. Profits reportedly to the tune of Rs 32 crore were made by Roopalben Panchal and Associates by using more than 6000 benami demat and bank accounts in order to subscribe to over 65 lakh shares of Yes Bank.

SEBI said that Roopalben Panchal & Associates threatened market integrity and thus have been barred for three months from the capital markets.

The capital markets regulator has sought disgorgement of Rs 36.09 crore within 45 days. Failure to do this, would result in Roopalben & associates being barred for nine years. Until SEBI realizes the disgorgement, demat accounts of the company will be frozen.