Chennai: The Securities and Exchange Board of India (SEBI) on Thursday said it has begun the distribution, to 4.63 lakh investors, of disgorged amount from initial public offering (IPO) 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,” said the market regulator, in a statement.
According SEBI, wherever the bank details of the eligible investors are available, the amount would be credited in the said account and investors will be intimated.
“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,” it said.
According to SEBI, in the second tranche of distribution, 202,763 investors would be paid full eligible amount and the remaining 260,531 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 and others shall be taken on or before May 31, 2016.
Investors may approach 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 (firstname.lastname@example.org ) or Recovery Division, SEBI Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai-400051 (email:email@example.com).
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, inter alia, directed certain people to disgorge the illegal gains.
Under the chairmanship of Supreme Court’s former judge, Justice DP Wadhwa, a committee was set up to recommend the procedure of identification of people who have been deprived in the said IPOs and the manner in which reallocation of shares to such investors should take place.
As per the recommendations of Wadhwa Committee, 12.75 lakh people 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, it said.For all the latest National News, download NewsX App