SEBI distributes disgorgement amount to the investors affected by IPO Irregularities

SEBI has initiated the second tranche of distribution of amount to 4.63 lakh investors from the disgorged amount in the matter of Initial Public Offerings (IPOs) irregularities. An amount of Rs.18.06 crore, which includes Rs.7.35 crore recovered by SEBI in exercise of the newly conferred recovery powers under the Securities Laws (Amendment) Act, 2014, would be distributed to the 4.63 lakh eligible investors across the country on December 18, 2015.

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.  The list of eligible investors along with amount credited /sent by SEBI will be available on SEBI website (www.sebi.gov.in).

In the present tranche-2 distribution, 2,02,763 investors would be paid  full eligible amount and the remaining 2,60,531 investors would be paid in part. SEBI is continuing its recovery process by identifying assets of the defaulters, etc. for recovering and distributing the same to the remaining investors.

The investor who has received credit intimation and has not received the credit in his/her  bank account and any queries relating to payment, revalidation, modification, etc., shall be taken on or before May 31, 2016 at the office of the Facilitator Registrar – TSR Darashaw Limited Unit SEBI-IPO Reallocation – Tranche -2 at 6-10, Haji Moosa Patrawala Industrial Estate, 20 Dr. E Moses Road, Mahalaxmi, Mumbai – 400 011 (iporeallocation@tsrdarashaw.com ) or Recovery Division, SEBI  Bhavan, Bandra Kurla Complex, Bandra (East),  Mumbai–400051 (email:ipotranche2@sebi.gov.in).

SEBI  had investigated into certain irregularities in the shares issued through 21 IPOs  during the period of 2003-2005 before their listing on the stock exchanges. Upon completion of the  investigations, SEBI had, interalia, directed certain persons to disgorge the illegal gains.

Under the Chairmanship of Justice D.P. Wadhwa, former Judge of Supreme Court of India, a committee was set up namely ‘Wadhwa Committee’, 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.  As per the recommendations of Wadhwa Committee, 12.75 lakh persons had been  identified as eligible investors for distribution. SEBI has already distributed Rs.23.28 crore to 12.75 lakh investors in April 2010,  out of which 7.99 lakh investors were paid the full eligible amounts. In the present tranche-2 exercise, SEBI is  distributing amounts to those investors to whom  partial amount was paid earlier and are entitled to receive additional amounts.

Mumbai

December 17, 2015