SEBI to go ahead with interim order: Damodaran

Kolkata, May 9: Market regulator Securities and Exchange Board of India (SEBI) today said it would go forward with the interim order restraining the key operators and their financiers from the capital market for ''abusive practices'' with respect to initial public offering (IPO) of several companies as the Andhra Pradesh and Gujarat High Court orders do not come in the way of the April 27 order.

''The court orders do not come in the way of the interim order issued by the market regulator. We will go forward with the interim order,'' SEBI chairman M Damodaran told reporters after an interactive business meet with the Bengal Chamber of Commerce and Industry.

In its interim order of April 27, Sebi had given the barred 24 key operators and their 85 financiers till May 12 to submit in writing their reply to the charges and seek a hearing before the regulator to present their case.

In the meantime, the Andhra Pradesh High Court had partially stayed the SEBI order on Karvy by allowing the present investors to stay with the company but did not stay the other contents of the SEBI order.

Although the Gujarat High Court has stayed the order restraining broker Saumil Bhavnagari from dealing in the market in the wake of IPO demat scam, but allowed the market regulator to take appropriate action against him after giving him a hearing.

Mr Damodaran said some of the key operators and their financiers have already submitted their clarifications and their matters were being heard by the market regulator.

He clarified that the interim order was necessary to stop further manipulation in the market.

UNI