Sebi board to discuss NSDL issue on April 13

The Securities and Exchange Board of India (Sebi) board will meet on April 13 to discuss the judgement given by a two-member committee on the initial public offer scam, involving the National Securities and Depository Limited (NSDL).

“The matter will be discussed in the forthcoming board meeting and the details of the order will be posted on the Sebi website,” sources familiar with the developments said.

An independent panel had criticised NSDL for failing to discharge its responsibilities. The matter became contentious as Sebi has not posted the order on its website even three months after the panel gave its order. Sebi Chairman C B Bhave was the chairman of NSDL in the period for which the depository's functioning has come in for criticism.

Bhave, however, told Business Standard, “This is the only matter with Sebi in which I have no role to play. I have recused myself from this matter, as I was not a part of Sebi when the regulator had passed its order against NSDL.”

In April 2006, Sebi discovered that over 50,000 demat accounts were opened with NSDL and Central Depository Services Limited for circumventing gains from IPOs of 21 companies between 2003 and 2005.