File rejoinder in Opee Stock-Jet Airways scam: SC to Sebi

The Supreme Court today directed market regulator the Securities Exchange Board of India (Sebi) to file a rejoinder in the IPO scam involving Ahmedabad-based firm Opee Stock Link, Jet Airways and IDFC.

A Bench headed by Chief Justice S H Kapadia directed the Sebi to file its rejoinder over the reply filed by Opee Stock Link.

The Bench, which also consisted of Justice K S Radhakrishnan and Justice Swatanter Kumar, adjourned the matter for two weeks.

The apex court's direction came during the hearing of a petition filed by Sebi, challenging the orders of the Securities Appellate Tribunal (SAT), which had let off Ahmedabad-based Opee Stock Link from charges of manipulating IPO of Jet Airways.

Earlier, the Sebi had found that Opee Stock Link had cornered the retail category shares of Jet Airways and IDFC by using several fictitious demat accounts and thus deprived genuine retail investors from investing in the IPOs.

However, contrary to Sebi findings, SAT held that Opee Stock Link was not a "key operator" in manipulating the 12,000 shares in the Jet Airways IPO as alleged by Sebi.

SAT had also set aside Sebi's order disgorging Opee Stock Link of Rs 1.2 crore and barring it from trading for one year.