Capital market regulator SEBI Tuesday imposed fine of Rs 16 lakh on two market intermediaries for irregularities in the initial public offers (IPOs) of 16 companies between 2003-05.
     
"I hereby impose a penalty of Rs 15 lakh on Roopal Nareshbhai Panchal and a penalty of Rs 1 lakh on Arjav Nareshbhai Panchal... In the facts and circumstances of the case, I am of the view that the said penalty is commensurate with the violations committed," a SEBI official said in an order.
     
The case relates to IPOs of 16 companies, including NTPC, IDFC, TCS and Suzlon, during the period 2003-05. In the said IPOs, a group of market operators cornered shares reserved for retail investors, for which they incurred huge losses.
     
"The noticees (market operators) have indulged in fraudulent and manipulative activities and employed deceptive device and scheme to corner the shares reserved for retail investors in the 16 IPOs with the intention to defraud retail individuals," SEBI said.
     
The scam came to light in 2005-06 and the Securities and Exchange Board of India (SEBI) initiated probe against the operators who pocketed huge sum of money from these IPOs.
     
In February 2011, SEBI barred six market intermediaries from trading in securities for three months for carrying out manipulations in these 16 IPOs and also imposed Rs 36.09 crore fine.
     
The entities were - Roopalben N Panchal, Devangi Panchal, Dipak Jashvantlal Panchal, Hina Bhargav Panchal, Bhargav Ranchhodlal Panchal and Arjav Nareshbhai Panchal.
     
In 2009, SEBI had issued show cause notice against the six people for opening thousands of demat accounts in fictitious names and manipulating applications in the retail category of several IPOs.
     
During 2005-06, SEBI had restrained these people from buying, selling or dealing in the securities market, including IPOs. 
PTI