IPO scam: SAT asks NSDL to file reply by June 20

The Securities and Appellate Tribunal (SAT) has directed the National Securities Depository (NSDL) to file by June 20 its reply

Written by Press Trust Of India | Mumbai | Published: June 14, 2013 1:25:58 am

The Securities and Appellate Tribunal (SAT) has directed the National Securities Depository (NSDL) to file by June 20 its reply in the case related to the Rs 500 crore IPO scam.

According to sources,during a hearing on June 11,the tribunal said that it would be the last chance for NSDL to file the reply. The tribunal has fixed July 8 as the date for the final hearing,they added.

The case involves the former Sebi chairman CB Bhave,who was heading the NSDL at the time of the scam that saw opening of thousands of fake demat accounts to corner shares in initial public offerings (IPOs). Market regulator Sebi’s investigation into the scam began during the tenure of M Damodaran,Bhave’s predecessor.

A Sebi probe panel,headed by K Mohan Gopal and V Leeladhar,who was then deputy governor of RBI,had found both NSDL and Bhave guilty of negligence and said that there should be accountability fixed in the case. But by that time,Bhave was heading the Sebi. Following this,Sebi board rejected its own committee findings.

Later,a public interest litigation was filed in the Supreme Court in 2011,which asked Sebi to take a view on the matter by August 2011.

Bhave’s term ended at Sebi in February 2011,and in July that year,Sebi board under UK Sinha decided to look at the matter afresh.

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