Depositories, DPs asked to disgorge Rs 115cr

In continuation of the interim order dated April 27, 2006 relating to
IPO manipulation, G Anantharaman, whole-time member of Securities & Exchange Board of India (Sebi) passed an interim order today.

The order has asked both the depositories viz. National Securities Depository (NSDL) and Central Depository Services (India) (CDSL) and eight (8) depository participants namely Karvy Stock Broking, HDFC Bank, Khandwala Integrated Financial Services, IDBI Bank, Jhaveri Securities, ING Vysya Bank, Pravin Ratilal Share & Stock Broking and Pratik Stock Vision to jointly and severally disgorge an amount of Rs.115.81 crore within six months from the date of passing of the order.

The order further states that "all parties are at liberty to seek contribution/indemnity from any party, which they believe is liable to a greater extent than quantified here as also from individuals and companies that were involved in the IPO cornering/fraud but are not named not being intermediaries under S. 12 of the SEBI Act 1992."