IPO scam: Court orders not to stall Sebi probe

Source: PTI

May 09, 2006 15:44 IST

Stay orders by courts against the Securities and Exchange Board of India's interim directive in the IPO scam would not come in the way of the regulator's investigations into malpractices in public issues, Chairman M Damodaran said on Tuesday.

Queried on the fate of the interim order after two alleged offenders had obtained stay orders, Damodaran said Sebi had studied the court orders and the verdicts would not stand in the way of Sebi taking the process forward as mentioned in the interim order.

Saumil Bhavnagari, a broker, got stay from Gujarat high court against a bar imposed on him by an interim order of Sebi.

The Andhra Pradesh high court had also granted an interim stay on a major portion of the Sebi directives against depository participant

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Karvy.

"The Sebi process will continue on the lines whatever had been stated in the interim order," Damodaran said.

On April 27, Sebi had barred 24 operators including Karvy Stockbroking and Indiabulls from participating in the market since they were found to be intermediaries responsible for perpetrating the IPO scam. The next day Sebi kept in abeyance its order against Indiabulls.

The market regulator also asked depository participants like Karvy not to open fresh accounts till further notice.

Sebi, in the order, asked the aggrieved parties to give their responses within 15 days from that date.

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