SEBI disposes case against Motilal Oswal in IPO scam

Market regulator SEBI has disposed a case against brokerage firm Motilal Oswal in connection with an IPO scam after the company agreed to pay Rs 500000 as settlement charges. “The consent order disposes the pending enquiry proceedings against the applicant (Motilal Oswal) in the matter of IPO irregularities during 2003-05,” Securities and Exchange Board of India (SEBI) said in its order. The case pertains to alleged cornering of shares meant for retail investors by scamsters in initial public offerings between 2003 and 2005 for which Motilal Oswal was the broker. The enquiry revealed that the brokerage firm had failed to exercise due diligence and did not adhere to the ‘Know Your Clients’ (KYC) norms while opening 697 demat accounts with common addresses.