IPO scam: Sebi passes final order

In continuation of the interim order dated April 27, 2006 relating to IPO scam, G Anantharaman, whole-time member of Securities & Exchange Board of India passed an interim order on Tuesday.

The order has asked both the depositories viz. National Securities Depository and Central Depository Services (India) and eight depository participants namely Karvy Stock Broking, HDFC Bank, Khandwala Integrated Financial Services, IDBI Bank, Jhaveri Securities, ING Vysya Bank, Pravin Ratilal Share and Stock Broking and Pratik Stock Vision to jointly and severally pay an amount of Rs 115.81 crore (Rs 1.15 billion)

within six months from the date of passing of the order.

The order further states that "all parties are at liberty to seek contribution/indemnity from any party, which they believe is liable to a greater extent than quantified here as also from individuals and companies that were involved in the IPO cornering/fraud but are not named not being intermediaries under S. 12 of the SEBI Act 1992."