IPO scam: SAT stays Sebi’s disgorgement order

The Securities Appellate Tribunal (SAT) on Thursday stayed the Securities and Exchange Board of India’s disgorgement order that had asked ten entities, including depositories NSDL and CDSL, to shell out about Rs 1160000000 for their role in the IPO scam. “After detailed consideration in the disgorgement order, the operational part of the order has to be stayed,” said SAT’s presiding officer Justice N.K. Sodhi while admitting the appeal by the ten affected parties. The market regulator’s disgorgement order had directed the ten entities to pay Rs 115.810000000 within six months for gross violations of know-your-client (KYC) norms in the allotment of shares in 21 IPOs during the period 2003 to 2005. Scamsters had fraudulently diverted shares allocated for retail investors in these IPOs.