'No Bank scam excepting irregularity to corner IPO retail portion'

New Delhi, Dec 19 (UNI) The RBI has reported that there is no scam except the irregularities in the financing of Initial Public Offering during the last year resulting in cornering of retail portion of shares by certain individuals andentities, the Rajya Sabha was informed today.

Minister of State for Finance S S Palanimanickam said, In his written reply that the RBI investigation had showed that ten scheduled commercial banks were found to be involved in facilitating the manipulation of IPO by few individuals/groups to corner retail allotments.

The Banks involved were Bharat Overseas Bank, Indian Overseas Bank, Vijaya Bank, ICICI Bank, HDFC Bank, Standard Chatered Bank, Citibank, IDBI Limited, ING Vysya Bank and Centurion Bank of Punjab Ltd.

The RBI, he said had advised banks concerned to examine staff accountablity and take action against the officials involved. The banks after examining had taken disciplinary action varying from issuing a warning letter to relieving from duties against erring officials.

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