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Mumbai, Nov. 5 SEBI proceedings against eight entities named in the IPO scam were dropped after they agreed to consent terms, paying Rs 2.87 crore in all towards disgorgement and settlement.

These entities were alleged to have acted as financiers to key operators in the IPO scam of 2003-04 during which period a number of dematerialised accounts were opened in fictitious names for cornering IPO shares reserved for retail individual investors.

Based on its preliminary findings, SEBI had passed an ex-parte order in April 2006 prohibiting these entities from transacting in securities.

These eight entities had applied to SEBI for settlement of the pending proceedings through consent orders.

SEBI had introduced the consent order scheme earlier this year whereby persons or entities accused of violating securities laws can have their cases settled after agreeing on the punishment with SEBI for speedy litigation. A high-powered advisory committee of SEBI considers the consent and settlement terms.

SEBI would still reserve the right to take enforcement actions against the entities, including reopening of pending proceedings, should the applicant misrepresent matters or breach consent terms.

In the matter of another entity, Ms Himani Patel, accused of similar irregularities in cornering shares in the IPO of Suzlon Energy, SEBI had passed an enforcement order last Friday.

Ms Patel has been ordered to disgorge Rs 33.5 lakh and has also been barred from transacting in the securities market for a period of three years.

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