January
15, 2009
PR No. 022/2009
SEBI passes Consent Order in the matter of IPO Irregularities �
Jhaveri Securities Limited
A Panel consisting of Whole Time Members, SEBI, Dr. K.M. Abraham and /span>Shri M.S. Sahoo has passed a consent order on December 22, 2008 in the matter of �irregularities relating to Initial Public Offerings (IPOs)� on an application submitted by Jhaveri Securities Limited.
Jhaveri Securities Limited was identified as key operator to corner the shares in the IPO of Suzlon Energy Ltd. The applicant, who is a stock broker as well as a depository participant also failed to exercise due skill, care and diligence in opening demat accounts. Based on findings SEBI passed an ad interim ex-parte order dated April 27, 2006 directing the applicant not to buy, sell or deal in securities market as stock broker and not to open fresh demat accounts as a depository participant till further orders. After giving an opportunity of hearing to the applicant ,SEBI vide order dated May 26,2006, exonerated the applicant as a key operator and revoked directions against the applicant in its capacity as a stock broker. However enquiry proceedings were initiated against the applicant in its capacity as a depository participant and show cause notice issued to him on March 26,2007.
The applicant without admitting or denying the charges has remitted a total sum of Rs.1,00,000/- (Rupees one lakh only), towards the settlement charges.
Mumbai
January 15, 2009
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