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The Securities Appellate Tribunal (SAT) today adjourned the final hearing on the National Securities Depository Ltd’s (NSDL) appeal related to the initial public offering (IPO) scam to July 8.
NSDL had moved SAT against the Securities and Exchange Board of India’s (Sebi) decision to take action against it for failing to prevent the IPO scam during 2003-05, when thousands of fictitious demat accounts were opened.
Sebi had unearthed the IPO scam in April 2006, when it found some 59,000 fictitious demat accounts were opened to pocket shares meant for retail investors in 12 public floats between 2003 and 2005.
SAT has directed NSDL’s counsel to file a reply stating important developments in the last few years and measures taken to prevent a repeat of such incidents.
