sebi:TCN/109/ISD/03/07
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Objections rejected; held that DSBPL as financier/ultimate beneficiary cornered retail IPO allotment in TCS and violated Regulation 3 of FUTP Regulations, 2003 and is jointly and severally liable to be proceeded against before the Adjudicating Officer
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 12A
- s. 12
- s. 15I
- s. 11C
- s. 12(3)
Regulations
- Reg. 3
- Reg. 199
- Reg. 200
Parties
- Deep Stock Broking Private Limited
Holding
DSBPL financed SEIPL's cornering of TCS retail IPO allotment, received 12,920 shares and profited on sale, and is therefore a financier/ultimate beneficiary and person associated with the securities market liable for violation of Regulation 3 of FUTP Regulations, 2003.
Full text
2 investigation by calling for data from various entities such as Depository Participants, Banks, Issuer Companies, the Depositories and the Registrars to the Issues etc. During the investigation, it was found that large numbers of multiple dematerialized accounts with common addresses were opened in the name of benami or fictitious entities and/or persons by a few operators who have played major role in cornering the shares meant for retail investors.
3 suspected that these financiers were the ultimate beneficiaries of the IPO abuse committed by the key operators. As observed in the cases of Yes Bank and IDFC, it would be seen that many of the financiers might have sold the shares immediately on listing and commencement of trading on the stock exchanges thereby profiting from the higher listing price as compared to the issue price. Even in a few cases where the financiers may not have actually sold the shares in the market, made notional gains from the higher listing price.
4 closing price (on NSE) on the first day of listing in respect of the above IPO with the issue price of the respective IPOs. The calculations with reference to DSBPL are as under:
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Source: SecMarx — sebi:TCN/109/ISD/03/07. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.