May
23, 2011
PR No. 073/2011
SEBI passes Consent Order in the matter of IPO irregularities – ARJ Shares & Stock Brokers Pvt. Ltd.
A Panel consisting of Whole Time Members, SEBI, Dr. K.M. Abraham and Shri Prashant Saran has passed consent order on May 16, 2011 in the matter of “irregularities in the IPOs" on the application submitted by ARJ Shares & Stock Brokers Pvt. Ltd.
ARJ Shares & Stock Brokers Pvt. Ltd. (erstwhile Pratik Stock Vision Pvt. Ltd.), a depository participant (DP) registered with SEBI had facilitated opening of several demat accounts having common address without complying with the KYC norms. It was further observed that several such demat accounts opened by it were having same address as that of Mr. Purushottam Budhwani and Mr. Manojdev Seksaria who were the two key operators involved in the IPO irregularities. The said accounts were opened by the key operators for making applications for cornering the shares earmarked for the retail investors in the IPOs. Therefore, SEBI initiated proceedings under section 11B of SEBI Act, 1992.
The applicant without admitting or denying the charges has remitted a sum of ` 15,00,000/- (Rupees fifteen lakh only) as settlement charges.
Mumbai
May 23, 2011
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