Sebi will revisit clean chit to NSDL

The Sebi board is scheduled to meet on April 26 to discuss the NSDL matter to finalise its reply to a notice from the apex court, a senior official told PTI.

The Supreme Court on March 28 asked Sebi to reply within four weeks on whether it would revisit its decision to give a clean chit to NSDL (National Securities Depository Ltd) in a major scam related to share allotment irregularities in various initial public offers (IPOs) during 2003-2006 period. The official said that NSDL was given a clean chit last year by Sebi, when it has C B Bhave as Chairman, but there have been many changes since then at the regulatory authority.

A bench of Justice R V Raveendran and Justice A K Patnaik asked Sebi to clarify whether its board would reconsider the order of a special committee with regard to NSDL. The Supreme Court bench asked Sebi’s board to pass an appropriate resolution and place the same before the court. Sebi’s board had given NSDL the clean chit after setting aside the order of the special committee, which had found NSDL to be at fault in the matter.

The issue reached Supreme Court after a special leave petition was filed in the apex court in this regard.