The Hindu Business Line : SEBI lifts ban on Centurion Bank of Punjab for DP operations

The order further states that it is only a prima facie finding and all issues and contentions are left open to be decided by the Enquiry Officer at a further stage.

SEBI had issued certain interim directions against various market participants, in an order dated April 27, 2006, including Centurion Bank of Punjab Ltd, a Depository Participant of Central Depository Services Ltd, for failing to adhere to the "know your client" norms while opening demat accounts, which lead to cornering of the retail segment in initial public offerings.

In view of these findings, the bank was directed not to open fresh demat accounts till further directions.

According to an order passed by the SEBI Whole-Time Member, Mr T.C. Nair, "more than nine months have elapsed since Centurion Bank of Punjab has been restrained from opening of new demat accounts. It is seen from the submissions of CBoP that pursuant to the ex-parte order, it had taken necessary steps in closing certain accounts and action against the concerned persons/branches responsible for the lapses."

However, ``necessary action may be taken against CBoP, if it is found guilty of violating any regulations of SEBI which was being examined by SEBI's enquiry officer," the order said.

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