Four held in IPO scam case

A day after carrying out searches in four cities, the Central Bureau of Investigation on Thursday arrested seven persons in connection with the Initial Public Offering scam in the IDFC and YES Bank Limited which resulted in an illegal gain of Rs. 320000000 to certain individuals and entities. Of the seven arrested, four are frontmen and three financiers. While four arrests were made in Ahmedabad, three were in Mumbai, CBI sources said. The agency registered two cases against several people for allegedly cornering shares of these two banks and offloading them on the day of its listings in the stock exchange. Among the arrested were Dipak Bhai Panchal and Parag Javeri, two frontmen from Ahmedabad, and Deren Vohra and Jayesh Khandela, two financiers from the same place. The CBI also arrested Purushottam Ghanshyam Bhudwani, Manoj Seksaria and Dushyant Natwarlal Dalal in Mumbai. CBI sources said the SEBI was expected to hand over more cases to the agency where similar frauds had taken place.