Two persons -- Dushyant Natwarlal Dalal and Puloma Dushyant Dalal -- have settled a probe by markets regulator Sebi after paying over Rs 76 lakh towards settlement charge for alleged involvement in the infamous IPO scam of 2003-05.
Securities and Exchange Board of India (Sebi) agreed to settle proposed adjudication proceedings in the case after it was approached by these persons with a settlement application.
They filed a settlement application proposing to settle, "without admitting the findings of fact and conclusions of law" through a settlement order, the pending adjudication proceedings initiated by the regulator for the alleged violation of the PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) norms as well as non-compliance with Sebi's direction.
Besides, they made the payment of over Rs 76.66 lakh towards settlement charges as suggested by the markets watchdog.
Consequently, the regulator, through a settlement order passed on Tuesday, said, "the enforcement proceedings for the alleged defaults
"
The regulator, which had conducted an investigation in the matter of the alleged irregularities during the initial public offering of various scrips, had observed certain irregularities in the transactions in the shares that were issued through the IPOs during the period 2003-05, before their listings on the stock exchanges.
The two had been accused of making unlawful gains by cornering shares of various companies meant for retail investors.
Subsequently the applicants preferred an appeal before the Securities Appellate Tribunal (SAT) and
The regulator in its order said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the persons are found to be untrue.