SEBI resolves 2 more IPO scam cases.

Securities and Exchange Board of India (SEBI) has resolved two scam cases via consent order route after three years long investigation, reports Business Standard.

The scam involved 10,000 benami demat accounts with common addresses that cornered company shares set aside for small investors in initial public offerings (IPOs).

SEBI had passed an ex parte order in April 2006, directing HDFC Bank, a SEBI-registered depository participant (DP), not to open fresh demat accounts till further orders and the same was cancelled in November 2006.

SEBI settled the case, directing the HDFC Bank to pay Rs 100,000 towards settlement charges and it has also directed Jhaveri Securities, stockbroker and DP, to pay up Rs 100,000 towards settlement charges in another consent order. - MyIRIS