New Delhi, Feb 22 (UNI) The CBI raided 27 places in four cities today in connection with a major fraud in allotment of Initial Public Offering issues of Yes Bank Ltd and Infrastructure Development Finance Company.
The raids, which continued throughout the day in Ahmedabad, Mumbai, Hyderabad and Delhi, showed that some individuals and companies had made Rs 32 crore illegal profit by cornering a large number of shares meant for the retail investors, agency spokesman G Mohanty told reporters.
The CBI had registered two regular cases following a complaint by the Securities and Exchange Board of India, he said.
The individuals/entities cornered the shares by making applications in fictitious names with photographs obtained fraudulently. Fictitious bank accounts were opened in several banks, particularly with Bharat Overseas Bank, Ahmedabad, and its Worli and Goregaon branch in Mumbai.
They also opened several fictitious D-mat (dematerialised) accounts with Depository Participants (DPs) to gain access to shares meant for the retail investors.
The searches also yielded about Rs one crore in cash and substantial investment in other assets, Mr Mohanty said. The premises of M/S Sugandh Estates and Investment Pvt. Ltd. (SEIPL), Ahmedabad, were among those raided.
Agency sources said in Mumbai that the premises of several brokers and stock market intermediaries in Mumbai and Ahmedabad were raided. The action slightly impacted the stock market with the sensitive index diving to 10,157.26 points from the higher morning trading range of 10,200 to 10,222, before recovering in late trading and settling at 10,224.32 points, a Mumbai report said.
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