The Securities and Exchange Board of India on Friday has kept the ban on Indiabulls [Get Quote] in abeyance following the brokerage objecting to the Sebi move and filing its objections on it.

In a statement issued on Friday, Sebi said: 'Pursuant to the same and on the basis of oral and written submissions made by Sameer Gehlaut, Chairman, Indiabulls Securities Ltd, and having regard to the balance of convenience in the materiality of circumstances of the case, the ex-parte ad interim order dated April 27, 2006 in the matter of initial public offerings, in so far as it relates to Indiabulls Securities Ltd would be kept in abeyance subject to verification of clients and until further directions.'

Earlier, Indiabulls Financial Services Ltd said it will contest the Sebi order, which debarred Indiabulls Securities from dealing in the equity market.

The company informed the Bombay Stock Exchange that the order was based on 'factually incorrect data' and it would be contesting and filing its objections against the market regulator's order.

The only allegation against Indiabulls Securities in the SEBI order is that the company received 13,939 shares of TCS [Get Quote] after its IPO from 559 different accounts, it said.

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The order implies that the 559 account holders applied for TCS IPO on behalf of Indiabulls Securities Ltd to corner TCS shares by multiple retail applications and hence the 559 clients transferred 13,939 shares to Indiabulls Securities account immediately after the TCS IPO, the company said.

However, the 559 account holders, transferred the shares in the 'Client margin account' of Indiabulls Securities for their trading purposes towards meeting their margin requirements as per the stock exchange rules and regulations, it said.

Karvy yet to receive SEBI orders

Meanwhile, Karvy Stock Broking -- another brokerage that was banned by Sebi on Thursday -- is yet to receive the orders passed by Sebi banning it from operating in the stock market.

An executive at Karvy, headquartered in Hyderabad, told PTI: "We have not yet received the orders."

Asked whether Karvy, the country's largest depository participant would move the Securities Appellate Tribunal (SAT) contesting the Sebi order, he said that an appropriate decision would be taken once the order is received.

Besides Karvy, Sebi had banned 23 other market operators, including Indiabulls, from operating in the market in view of their alleged role in the IPO scam that came into light in the middle of December last year.

Additional inputs: PTI