sebi:WTM/GA/105/IVD/11/06

SEBI · SEBI · 2006-04-28 · G. ANANTHARAMAN, Whole Time Member

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Facts / Headnote

Interim order dated April 27, 2006 finally disposed off qua India Bulls Securities Ltd. without any further directions

Provisions invoked

• s. 11
• s. 19
• s. 12

Parties

• India Bulls Securities Ltd.

Holding

The interim order dated April 27, 2006 against India Bulls Securities Ltd. was finally disposed off without any further directions, holding IBSL received TCS shares as a stock broker in its client margin account and not as a key operator cornering IPO allotment.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ DIRECTIONS UNDER SECTIONS 11 READ WITH 11 B OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 IN THE MATTER OF INVESTIGATIONS IN RE OF INITIAL PUBLIC OFFERINGS AGAINST INDIA BULLS SECURITIES LTD. Date of Hearing: April 28, 2006 & November 10, 2006 Appearances For Noticee :   Shri. Sameer Gehlaut, Chairman Shri. Chetna Ghowe, Vice President Shri Gagan Banga , Director For Securities and Exchange Board of India: Shri. Sanjiv Dutt, Chief General Manager. 1.0  BACKGROUND 1.1  Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted an investigation into the buying, selling or dealing in the shares issued through Initia Offerings (IPOs) of companies during the period 2003-2005. The investigation conducted by SEBI found that, many dematerialized accounts (hereinafter referred to as accounts”) in fictitious/ benami names were opened by certain entities (hereinafter referred to as the “Key Operators”) and these entities had cornered/ acquired the s various companies allotted in the IPOs, by making applications in fictitious/ benami names with each of the applications being of small value so to make it eligible for allotme the retail category. 1.2 The investigation conducted by SEBI prima facie revealed that subsequent to the allotment of IPO shares of various companies, the fictitious/benami allottees had transferred shares to their principals who in turn had transferred the

Appearances For Noticee : Shri. Sameer Gehlaut, Chairman Shri. Chetna Ghowe, Vice President Shri Gagan Banga , Director For Securities and Exchange Board of India: Shri. Sanjiv Dutt, Chief General Manager. 1.0 BACKGROUND 1.1 Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted an investigation into the buying, selling or dealing in the shares issued through Initial Public Offerings (IPOs) of companies during the period 2003-2005. The investigation conducted by SEBI found that, many dematerialized accounts (hereinafter referred to as “afferent accounts”) in fictitious/ benami names were opened by certain entities (hereinafter referred to as the “Key Operators”) and these entities had cornered/ acquired the shares of various companies allotted in the IPOs, by making applications in fictitious/ benami names with each of the applications being of small value so to make it eligible for allotment under the retail category. 1.2 The investigation conducted by SEBI prima facie revealed that subsequent to the allotment of IPO shares of various companies, the fictitious/benami allottees had transferred the said shares to their principals who in turn had transferred the shares to the financiers that had provided finance for executing the entire game plan. It was also found that the financiers in turn had sold most of the said shares immediately upon listing and thereby made huge gains from the price difference between the IPO price and the listing price. The

Place: Mumbai G. ANANTHARAMAN Date: 28.11.2006 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA 28/10/2025, 12:00 about:blank about:blank 3/3

Source: SecMarx — sebi:WTM/GA/105/IVD/11/06. 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.