 "IPO irregularities: Sebi to refund disgorged funds to investors")
The Securities and Exchange Board of India (Sebi) will distribute among eligible investors the funds it has collected through disgorgement orders in cases of initial public offering (IPO) irregularities - a move that will benefit as many as 463,000 investors.
The total amount to be distributed is about Rs 18 crore, which includes Rs 7.35 crore recovered by Sebi through exercise of its newly conferred recovery powers.Wherever the bank details of the eligible investors are available, the amount would be credited in the said account with an intimation to the investors.
In the cases where bank details are not available, the cheques would be sent to the last-known address of the investors, Sebi said in a statement. A list of eligible investors along with amount credited/sent by Sebi would be also put up on its website for the benefit of investors.
According to the recommendations of Wadhwa Committee, 1.3 million persons were identified as eligible investors for distribution.
Sebi has already distributed Rs 23.28 crore to 1.3 million investors in April 2010, out of which 799,000 investors were paid the full eligible amounts.
In the second tranche, Sebi is now distributing funds to those investors to whom partial amount was paid earlier and are entitled to receive additional amounts. In this tranche involving 463,000 investors, 202,763 investors would be paid full eligible amount and the rest would be paid in part.
Sebi further said it is continuing its recovery process by identifying assets of the defaulters for recovering and distributing the same to the remaining investors.
The investors who received the credit intimation and but do not get the credit in his or her bank account have been asked to contact Sebi by May 31, 2016.
The total amount to be distributed is about Rs 18 crore, which includes Rs 7.35 crore recovered by Sebi through exercise of its newly conferred recovery powers.Wherever the bank details of the eligible investors are available, the amount would be credited in the said account with an intimation to the investors.
In the cases where bank details are not available, the cheques would be sent to the last-known address of the investors, Sebi said in a statement. A list of eligible investors along with amount credited/sent by Sebi would be also put up on its website for the benefit of investors.
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Sebi had investigated into certain irregularities in the shares issued through 21 IPOs during 2003-2005 before their listing on the stock exchanges. Upon completion of the investigations, Sebi had directed certain persons to disgorge the illegal gains. A committee was set up under the chairmanship of D P Wadhwa, a former Supreme Court judge, which recommended the procedure of identification of persons who have been deprived in the said IPOs and the manner in which reallocation of shares to such persons should take place.
According to the recommendations of Wadhwa Committee, 1.3 million persons were identified as eligible investors for distribution.
Sebi has already distributed Rs 23.28 crore to 1.3 million investors in April 2010, out of which 799,000 investors were paid the full eligible amounts.
In the second tranche, Sebi is now distributing funds to those investors to whom partial amount was paid earlier and are entitled to receive additional amounts. In this tranche involving 463,000 investors, 202,763 investors would be paid full eligible amount and the rest would be paid in part.
Sebi further said it is continuing its recovery process by identifying assets of the defaulters for recovering and distributing the same to the remaining investors.
The investors who received the credit intimation and but do not get the credit in his or her bank account have been asked to contact Sebi by May 31, 2016.