SEBI diluted its stand while affected parties are agitated

Mumbai, Apr 28 (UNI) The Securities and Exchange Board of India (SEBI) has diluted its stand in connection with its ''hasty action'' last night by stating that the ban in trading was only on proprietor accounts and clients will not have any problem in trading.

Late evening yesterday, SEBI issued an order banning 85 entities including leading broking houses like India Bulls, Karvy Stock Broking from capital market participation because of irregularites in financing and opening the master accountholders particularly in the IPOs of several leading corporates in recent past.

The market which opened today admist confusion over the SEBI order, gained certain momentum in afternoon with the SEBI clarification.

As the top officials rushed to SEBI Headquarters to represent their cases with SEBI whole time director G Anantharaman, SEBI came out with another statement saying that it deferred its order banning Indiabulls Securities from participating in the capital market in the wake of its findings about the role of depository participants in the multi-crore IPO scam.

The order would be kept in abeyance, pending verification of clients.

''Pursuant to the same and on the basis of oral and written submissions made by Indiabulls Securities chairman Sameer Gehlaut and having regard to the balance of convenience in the materiality of circumstances of the case, the order would be kept in abeyance subject to verification of clients and until further directions,'' Sebi said.

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