December 23, 2010
PR No. 284/2010
SEBI passes Consent Order in the matter of IPO irregularities – Welvet Financial Advisers Pvt. Ltd.
A Panel consisting of Whole Time Members, SEBI, Dr. K.M. Abraham and Shri Prashant Saran has passed consent order on December 20, 2010 in the matter of “irregularities in the IPOs" on an application submitted by Welvet Financial Advisers Pvt. Ltd.
Welvet Financial Advisers Pvt. Ltd. cornered the shares meant for retail individual investors in various IPOs. Based on the findings SEBI had passed ad interim ex parte order dated April 27,2006 directing applicant not to buy, sell or deal in securities market, including IPO’s, directly or indirectly till further directions. A confirmatory order was passed against the applicant on December 01, 2008 and show cause notice issued on December 15, 2008 under Section 11B of the SEBI Act, 1992. SEBI also initiated adjudication proceedings against the applicant and a show cause notice dated June 14, 2006 was issued by the Adjudicating Officer.
The applicant without admitting or denying the charges has remitted a total sum of Rs.2,57,81,217/- (Rupees Two Crore Fifty Seven Lakh Eighty One Thousand Two Hundred and Seventeen only) comprising Rs.1,71,20,811/- (Rupees One Crore Seventy One Lakh Twenty Thousand Eight Hundred and Eleven only) towards disgorgement, Rs.85,60,406/- (Rupees Eighty Five Lakh Sixty Thousand Four Hundred and Six only) towards settlement charges and Rs. 1,00,000/- being the settlement charges for withdrawing the protest petition (M.A. No. 63/2008 in Spl. Case No.47/2007) against the applicant filed by SEBI before the court of Special Judge, Mumbai. Further, the applicant shall undergo voluntary debarment from buying, selling or otherwise accessing the securities market for a period of six months from the date of the order.
December 23, 2010