sebi:WTM/TCN/64/ISD/NOV/08
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Facts / Headnote
Interim directions under para 12.3 of the ex-parte interim order dated January 12, 2006 revoked/not continued against Datamatics Technologies Ltd.
Provisions invoked
- s. 11
- s. 19
Parties
- Datamatics Technologies Ltd.
Holding
The directions issued under para 12.3 of the ex-parte interim order dated January 12, 2006 against Datamatics Technologies Ltd. need not be continued and are revoked.
Full text
2 carried out a detailed 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 had played major role in cornering the shares meant for retail investors.
3 portion of the IPO shares. Since the financiers had received the shares from the key operators, it was suspected that these financiers were the ultimate beneficiaries of the IPO abuse committed by the key operators. As observed in the case of IDFC IPO, it would be seen that many of the financiers 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 and in other ensuing future IPOs, directly or indirectly, till further directions. 6. Para 12.1 of the ad interim ex-parte order dated January 12, 2006, stated that the said order shall be treated as show cause notice against the concerned entities named therein including DTL. These entities were given an opportunity for filing their objections, if any, to the order within 15 days from the date of the order and if they so desire, avail themselves of an opportunity of personal hearing at the SEBI Head Office, Mumbai within 15 days from the date of the order. They were also given an opportunity to avail inspection of the relevant documents relied upon by SEBI against them, prior to hearing.
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Source: SecMarx — sebi:WTM/TCN/64/ISD/NOV/08. 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.