Ready to revisit verdict on NSDL role in IPO scam: SEBI tells apex court

Press Trust of India New Delhi | Updated on May 09, 2011 Published on May 09, 2011

SEBI OFFICE   -  Business Line

The Securities and Exchange Board of India on Monday informed the Supreme Court that its board has decided to reconsider its earlier clean chit to National Securities Depository Ltd. The depository, which enables holding of shares and other securities in demat or electronic format, came under the scanner in 2006 after a probe into the IPO scam.

Replying to a notice from the apex court, the Attorney-General, Mr Goolam E. Vahanvati, told the court that the market regulator's board had in an April 26 meeting decided to reconsider a special committee's report that had found NSDL to be at fault.

SEBI said its board has decided to reconsider the report to accept it. The Bench comprising Mr Justice R. V. Raveendran and Mr Justice A.K. Patnaik directed listing of the case in July, saying that it would see the outcome of the SEBI decision.

On March 28, the Supreme Court had asked SEBI to reply on whether it would revisit its decision to give a clean chit to NSDL.

NSDL was given a clean chit last year by SEBI, when its Chairman was Mr C.B. Bhave, who earlier headed NSDL. Mr Bhave had recused himself from SEBI board meeting in February 2010, when the NSDL issue was discussed.

The issue reached the Supreme Court after a Special Leave Petition was filed in this regard.

Published on May 09, 2011
This article is closed for comments.
Please Email the Editor