24 operators barred from mkt for IPO scam role

f/ipoorder.pdf"> (Click here to see the Sebi order)  In an unprecedented move, the capital market regulator has called for a revamp of the management of National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). Several big banks and securities firms have been hauled up for gross violation of know-your-customer norms and facilitating opening of fictitious accounts. Sebi Chairman M Damodaran did not comment on the order. NSDL Chairman CB Bhave also declined to comment claiming that he had not gone through the order.  Finance ministry sources welcomed the order, saying it would send right signals to market participants. North Block sources also pointed out that the Reserve Bank of India would take appropriate action against the banks involved in the scam.  Market analysts predicted a spate of appeals to be filed by the involved entities. The interim order is in the nature of show cause notices and the parties can file their objections within 15 days with Sebi.  Depository participants Karvy and Pratik have been directed to shut shop while 12 others have been directed not to open fresh depository accounts as they failed to comply with the know-your-customer norms laid down by Sebi. The prominent names in this list include HDFC Bank, Centurion Bank of Punjab, IL&FS, Motilal Oswal Securities, Khandwala Int Fin Services, IDBI Bank and ING Vysya Bank.  The regulator has also directed NSDL to conduct inspection of another 15 DPs which had more than 500 demat accounts with common addresses. This list includes ICICI Bank, Standard Chartered Bank, UTI Bank, Kotak Mahindra Bank, Indusind Bank, Citibank, Stock Holding Corporation Of India, BNP Paribas, SSKI Investor Services and UCO Bank.  Refering to Karvy DP and Pratik DP, the regulator said, 'They do not appear to be fit to deal in securities market as Sebi registered intermediaries.  Appropriate quasi-judicial proceedings are being initiated against the two DPs.'  It also said that the depositories had failed to exercise oversight over their DPs. In a strongly worded statement, the order said,