New Delhi: The finance ministry has made it clear on Saturday that it will step in only if the market regulator SEBI and RBI failed to take action to prosecute those involved in multi-crore IPO scams.
A top official in finance ministry said, "It is for regulators to take action and as owners of public sector banks, we step in only when regulators fail to move forward in prosecution."
Basically, it was a regulatory issue, he said, adding it was for SEBI to go about on dealing with market manipulators.
The finance ministry has put the onus on SEBI to deal with the issue of prosecuting manipulative DPs involved in the scam.
Some top-level officials of the banks, which were blacklisted by SEBI are also suspected to be involved in the scam.
If these allegations are found true, finance ministry will take on the process of launching prosecution against those defamed.
SEBI had barred 24 key operators from operating in the stock market and banned 12 depository participants from
opening fresh accounts for their involvement in major IPO scams of Yes Bank and IDFC.
The market regulator, however, kept in abeyance a bar on India bulls, pending verification of its clients.
In its 256-page interim order on Friday night, the market regulator said all those involved in the IPO scams will be
prosecuted. It also barred 85 financiers of key operators from operating in the stock market.
HDFC Bank, IDBI Bank, Central Bank, ING Vysya Bank,IL&FS and Motilal Oswal have been asked by the market regulator not to open fresh demat accounts.
SEBI is initiating prosecution proceedings against the concerned entities. As directed by SEBI, the depositories i.e. NSDL and CDSL have advised their respective DPs to verify the genuineness of the dematerialized account-holders where 20 or more dematerialized account-holders have a common address and to close those dematerialized accounts where the DPs are unable to do the above verification.
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