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Home  » Business » IGF calls for a probe into 25 IPOs

IGF calls for a probe into 25 IPOs

Source: PTI
December 21, 2005 18:38 IST
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Calling the demat scandal in Yes Bank IPO allocation as "the tip of the iceberg", Investors' Grievances Forum on Wednesday demanded an inquiry into allocation of retail portion of almost 25 public issues that hit the market after June 1, this year.

"Of major public offers during last six months, Small Investors' section applications should be investigated to find out similar addresses," IGF President Kirit Somaiya said in a letter to the Finance Minister P Chidambaram and SEBI wholetime member G Anantharaman.

Major companies like ICICI Bank, ABG Shipyard, Piramyd Retail, Bombay Rayon Fashion Ltd raised money through IPOs or follow-on public offers after June, when Yes Bank came out with its IPO.

Somaiya told PTI that NSDL and CDSL should be asked to look into demat accounts with similar addresses during this calendar year.

Accounts with depository participatory companies, run by brokers, should be investigated first, he said. NSDL has 219 DPs and 557 DPs are with CDSL.

All the banks should also be asked to immediately check all the new accounts opened with similar addresses from this fiscal, said the letters, a copy of which was also dispatched to RBI.

First accounts in those branches be checked which has connection with capital market and demat accounts.  Last week, SEBI had debarred 13 entities for their alleged involvement in multiple demat account scam in Yes Bank IPO allocation.


More than 6,000 demat and bank accounts of those found involved in the irregularities have similar addresses.

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