Indias capital markets supervisor, the Securities and Exchange Board of India (Sebi), will have a look on Tuesday at the suspected participation of National Securities Depository Ltd (NSDL) in a 2005 scam concerning initial public offerings (IPO’s).
Few of the market participants used 59,000 pretended demat accounts to place share allotments intended for retail investors in the scam.
At present C.B. Bhave the chairman of Sebi was bearing NSDL at that time.
NSDL will hand over its case prior to the Sebi board, which will be headed by Mohandas Pai, a director of Infosys Technologies Ltd. C.B. Bhave has been staying away from the board proceedings to avoid any potential conflict of interest. Mr. Pai said that, “I have no explanation on the issue”. (Zolpidem)
This critical investigation comes after Sebi declared two of the three decisions of a special committee that was set up to look into NSDL’s function in the scam as null and void in November and said the issue will be heard afresh.