Riyaz Khan (CA CS (Exec) MBA (Fin) Asst. General Manager-SEBI Internal Auditor-British Certifications Inc.) 07 May 2010
SEBI mail, a pleasant surprise for investors
|IPO SCAM COMPENSATION.|
Tania Kishore Jaleel
Mumbai, May 6
Over the last two weeks, quite a few investors have been receiving surprise mails in the form of a letter from capital markets regulator SEBI, intimating them of payments of between Rs 20 and Rs 300 each.
These are the first of the 13.57 lakh persons who will be compensated for their unsuccessful subscriptttions to 21 IPOs during the scam period of 2003-2005. During this period, some scamsters opened thousands of demat accounts under fictitious names, and cornered shares reserved for retail investors. In some cases, they even used photos of people which were procured from photo studios.
Although the amounts paid by SEBI to such investors will be a pittance compared with the subscriptttion opportunity they might have missed, no one seems to be complaining. “It is a symbolic gesture and the first of its kind. Usually one never gets back even this much,” said Mr Prashant Bhansali of Mehta Equities who was received Rs 300. He says he is hopeful that SEBI will extract more from the fraudsters in the coming days!
The disbursement process of Rs 23.28 crore began last month, and persons across the country are receiving these little surprises from SEBI. “It is a gesture I appreciate fully,” said a retail investor from Bangalore.
An investor from Chennai said that when he saw he had a mail from SEBI, he was at first shocked: “I wondered what wrong I had done to get a letter from the regulator! I was pleasantly surprised to see that it said I will be compensated. Even though it is a tiny amount I am happy SEBI has given atleastthis much.”
There are about 7.99 lakh investors eligible for reallocation amounts of between Rs 20 and Rs 300. This covers 59 per cent of all the identified investors who are eligible for receiving some reallocation, SEBI had said in a circular.
The remaining 4.75 lakh investors, each of whom are eligible for reallocation amounts of more than Rs 300 will be paid first. They will get Rs 300 each, totally amounting to Rs 14.27 crore, said SEBI.
Mr Rakesh Goyal, Senior Vice-President, Bonanza Portfolio, was also one of compensated investors. He too was surprised to receive the letter from SEBI. “Even if it is a small amount compared with what I had applied for then, it is a good gesture. This is the first time this has happened, otherwise what is lost is lost.”
The IPOs affected by the scam included those of NTPC, TCS, Jet Airways, YES Bank and Suzlon Energy.
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