Scamsters gained Rs 95.69 crore by rigging IPOs between 2003 and 2005, a regulatory panel has found and suggested recovering this amount and distributing it among affected investors.
The value of frozen shares of these scamsters in the depositories worked out to be Rs 147.85 crore and the balance in their bank accounts frozen by CBI stands at Rs 1.2 crore as on October 31, 2007, the Justice Wadhwa Committee said.
The committee, set up by market regulator Sebi to investigate irregularities in IPOs floated during 2003-2005, suggested the possibility of recovering this amount and distributing it among the deprived applicants.
"The quantum of unjust gains based on allotment to... accounts is approximately Rs 95.69 crore...Value of the holdings in the frozen demat accounts in both NSDL and CDSL of the key operators and financiers as on 31.10.07 works out to be about Rs 17.85 crore. The balance in the bank accounts of operators/financiers frozen by CBI is Rs 1.2 crore," said the report.
The scam in 21 IPOs, including Jet Airways, NTPC, IDFC, TCS, Yes Bank, Gokaldas Exports, ILFS Investsmart, Suzlon Energy and Shoppers' Stop, related to alleged cornering the shares reserved for retail investors by scamsters through opening of fictitious accounts.