Govt likely to investigate all public offers made since 1999
The government has been asked to investigate all public offers made since 1999 to ascertain which ones have seen irregularities in allotment of shares.
It has also been ticked off for not giving “due seriousness” to the recommendations made by the joint parliamentary committees on scams. The drastic recommendation has been made by the standing committee on finance, in its report on the recent IPO scam.
It has also said the outcome of such investigations and action should be intimated to it. This could open a proverbial hornet’s nest for the government as that would mean opening up 894 public issues to decide if there has been any mischief in allotment to the eventual shareholders.
“The government should spare no effort to investigate and unearth any kind of manipulations in the IPOs since 1999, without further delay,” the committee has said in its report tabled in Parliament on Tuesday.
According to the committee, Sebi had not acted in time to take action against the damage in the IPO process. It, therefore, said that the committee is “perturbed over the fact that the irregularities in the IPO process are believed to have been going on since 1999 and the authorities have not made any effort, so far, to detect the irregularities.”
Sebi, on its part, has informed the committee it had examined 21 IPOs stretching back since 2003. The list includes Jet Airways, Shoppers’ Stop, IL&FS Investmart, Amar Remedies, NTPC and TCS, besides IDFC and YES Bank.
The 43rd report of the committee also said that action for implementing a comprehensive integrated market surveillance system should be speeded up. To eliminate benami transactions in securities, it has suggested the finance ministry and Sebi should develop a comprehensive central database of MAPIN fast.
It has also been ticked off for not giving “due seriousness” to the recommendations made by the joint parliamentary committees on scams. The drastic recommendation has been made by the standing committee on finance, in its report on the recent IPO scam.
It has also said the outcome of such investigations and action should be intimated to it. This could open a proverbial hornet’s nest for the government as that would mean opening up 894 public issues to decide if there has been any mischief in allotment to the eventual shareholders.
“The government should spare no effort to investigate and unearth any kind of manipulations in the IPOs since 1999, without further delay,” the committee has said in its report tabled in Parliament on Tuesday.
According to the committee, Sebi had not acted in time to take action against the damage in the IPO process. It, therefore, said that the committee is “perturbed over the fact that the irregularities in the IPO process are believed to have been going on since 1999 and the authorities have not made any effort, so far, to detect the irregularities.”
Sebi, on its part, has informed the committee it had examined 21 IPOs stretching back since 2003. The list includes Jet Airways, Shoppers’ Stop, IL&FS Investmart, Amar Remedies, NTPC and TCS, besides IDFC and YES Bank.
The 43rd report of the committee also said that action for implementing a comprehensive integrated market surveillance system should be speeded up. To eliminate benami transactions in securities, it has suggested the finance ministry and Sebi should develop a comprehensive central database of MAPIN fast.
posted by SY at 12:38 PM
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