IPO scam: Zenet Software told to cough up Rs 30.8 cr
After distributing around Rs 230000000 disgorged in the IPO scam to investors recently,the Securities and Exchange Board of India has now ordered Zenet Software to pay over Rs 30.880000000 and barred it from trading in stock markets for a year for its alleged involvement in the IPO scam of 2003-05,where shares meant for retail investors were cornered by scamsters. If Zenet fails to pay up the amount within 45 days,it will be barred from the markets for another nine years,Sebi said in its order. Zenet Software should disgorge the unlawful gains of Rs 22.050000000. It should also pay Rs 8.820000000 being the simple interest at the rate of 8% per annum for 5 years (2004-09) on the unlawful gains of Rs 22.050000000. Thus,Zenet Software Limited should pay a total amount of Rs 30.880000000 within 45 days, Sebi said. This is one of the heftiest fines slapped by the regulator on an erring entity. In case Rs 30.880000000 is not paid within the specified time,Zenet Software will be restrained from buying,selling or dealing in securities market for a further period of nine years,without prejudice to Sebis right to enforce disgorgement, the regulator said. The IPO scam refers to cornering of shares reserved for retail investors in the public issues of 12 public offers,including ILand FS,TCS,Yes Bank,Shoppers Stop,through fictitious multiple demat accounts. Citing examples,Sebi said had Zenet applied for IPO shares in individual capacity,it could have got an allotment of 266 IDFC shares or 214 NTPC shares. But by making applications through two key operators and providing finance to them for making IPO applications,Zenet was able to corner 73,150 IDFC and 7,48,546 NTPC shares. Sebi said it noticed certain irregularities in the transactions of shares issued through IPOs,made in 2003-05,before their listing on exchanges. New derivative products on Volatility Index MUMBAI The Sebi has allowed stock exchanges to introduce derivative contracts like futures and options on the Volatility Index. The Volatility Index is a measure of market participants near-term expectations of implied volatility based on market indices like the 50-stock options prices on the Nifty. The NSE has been disseminating its Volatility Index (VIX India) since April 2008. Currently,there are products based on indices like Nifty Futures. ENS