03 June, 2011

SEBI imposes Rs 14 cr penalty on two IPO scam financiers

The Dalals had been charged with being financiers to two key operators -- Sugandh Estates and Investments Pvt Ltd and Purshottam Budhwani.The key operators had allegedly opened large number of demat accounts in the name of non-existent persons or name lenders and acquired shares of various companies by making applications in fictitious names.The key operators subsequently transferred these shares through off-market deals to ultimate beneficiaries who had acted as financiers.IPOs of major firms like IL&FS, IDFC, FSC Software Solutions,Gateway Distriparks , Provogue , MSP Steel, Nectar Lifesciences , Shoppers' Stop and Suzlon were targeted by the two key operators the Dalals had connived with.
That was smart but illegal !!!!!