SEBI bans Roopalben Panchal, 5 others in IPO scam

Our Bureau Mumbai | Updated on February 26, 2011

The SEBI on Friday banned Ms Roopalben Panchal and five others from the securities market for a period of three months with immediate effect, and asked them to disgorge all unlawful gains made by them along with interest.

For their involvement in the IPO scam of 2003-2005, these six individuals will have to disgorge the unlawful gains they made, amounting to Rs 24 crore and also pay simple interest at 10 per cent for five years from 2005 to 2010 (Rs 12 crore) totalling Rs 36 crore.

This is SEBI's final order on this case where six entities Ms Roopalben N. Panchal, Ms Devangi Panchal, Mr Dipak Jashvantlal Panchal, Ms Hina Bhargav Panchal, Mr Bhargav Ranchhodlal Panchal, and Mr Arjav Nareshbhai Panchal were found guilty of cornering shares meant for retail individual investors in 18 IPOs using multiple and fictitious demat accounts.

This order supersedes all other interim orders issued against the notices in this case, said the stock market regulator.

On Non-payment

The ban period takes into account the period of prohibition already undergone by the noticees pursuant to the interim orders. The SEBI further directed that in the event of non-payment of the disgorgement amount within 45 days (by a crossed demand draft in favour of SEBI payable at Mumbai) of this final order, the six entities would be banned from the securities market for nine more years without prejudice to SEBI's right to enforce disgorgement.

In addition, their demat accounts will remain frozen until the said amounts are realised, said SEBI. The regulator has directed all stock exchanges and depositories to strictly comply with its directions.

Published on February 26, 2011

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