The Hindu Business Line : SEBI to probe ONGC share allotment issue: Shourie

THE market regulator SEBI will probe into the issue of over-allotment of ONGC shares to retail investors to find out if there was any ``culpable mistake'' and to determine as to who should bear the consequent losses, the Union Disinvestment Minister, Mr Arun Shourie, said here on Wednesday.

``If the responsibility is to be fixed, we will. It is not under the cover of collective responsibility that any one can escape,'' the Disinvestment Minister, Mr Arun Shourie, told newspersons here.

The Minister said that 52 high net worth individuals were over-allotted three lakh ONGC shares following the public offer. As many as 12 of these investors had volunteered to surrender the excess allotment and it was for SEBI to probe and decide on over allotment of one lakh shares to the remaining 40 retail investors.

The entire public offer process for sale of 10 per cent equity in ONGC was completed as the proceeds of Rs 10,542 crore was deposited in the Government account earlier in the day.

"The entire issue of over allotment has been happily resolved and is behind us," he noted.

He stated that no issue would be made if over allotment was due to an error, but it was for SEBI to find out whether the registrar or lead manager was responsible for the goof-up and if it was a culpable mistake.

Mr Shourie said that ONGC was setting up a helpline where investors can lodge their grievances relating to mismatch and what was being credited to them.

On March 29, the registrar to the ONGC issue, over allotted shares mainly in the high net worth investor category leading to freezing of depository transfers of these shares by National Securities Depository Ltd (NSDL).

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