CBI raids offices of stock brokers, firms on IPO scam

Mumbai, Feb 22 (UNI) Central Bureau of Investigation (CBI) today raided official premises of several brokers and stock market intermediaries in Mumbai and Ahmedabad following their alleged involvement in illegal cornering of retail category investor shares during the initial public offering (IPOs) of Yes Bank and IDFC.

Confirming the raids, CBI sources said the searches were conducted at 21 places - including five places in Mumbai, 15 in Ahmedabad and one in Delhi.

The searches were being conducted after a case was registered by the Bank Fraud and Securities Cell (BF&SC) of the CBI on a complaint by the Securities and Exchange Board of India (SEBI).

The IPO scam in which lead managers to the issues and bank officials were involved, resulted a loss of Rs 32 crore to the exchequer.

SEBI had registered two cases against Sugandh Estates and Investments directors Roopalben Nareshbhai Panchal and Deepak Panchal, some officials of Bharat Overseas Bank and Vijaya Bank for their role in depriving retail investors of the allotment of shares.

During the raids today, trading in the stock markets also experienced high volatility as the sensitive index dived 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.

UNI GC GK PA VC1725