SEBI cracks the whip on biggies for IPO scam

MUMBAI: Stock market regulator Securities and Exchange Board of India (SEBI) dropped a bombshell late on Thursday evening through an order which indicted some of the biggest names in the financial markets for their role in the IPO scam which came to light in mid-December last year.
In the 252-page order, SEBI said that at least 21 IPOs were manipulated by market participants to corner shares offered in the retail segment of IPOs.The interim order severely pulls up some of the top stockbrokers, depository participants, and financiers in the market.
Other than the now infamous Roopalben Panchal, SEBI has barred Indiabulls Securities, Anagram Securities and Karvy Stock Broking from the market. The Karvy group of companies ��� Karvy Stock Broking, Karvy Computershare, Karvy Investor Services, Karvy Consultants, who are believed to have acted as the main conduits in the IPO scam ��� has been directed not to take up any fresh businesses, the SEBI order said.
It could have a major impact on the market when it opens on Friday morning. Indiabulls alone accounts for about 6 per cent of the retail broking business in the market. Customers dealing in the cash segment may not be able to trade in the market.