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Market regulator Sebi today passed a final order against Karvy Computershare Private, a leading registrar and share transfer agent, for irregularities in initial public offerings (IPO) of various companies during 2006.
A Sebi enquiry officer, who found the company in violation of the Prohibition of Fraudulent and Unfair Trade Practices (FUTP) Regulations, 2003, recommended a nine month ban on Karvy.
However, as the company has already undergone prohibition about 10 months, Sebi, in the order, said 'no further penalty is warranted'.
"...since Karvy Computershare has already undergone the period of prohibition, no further penalty is warranted. Hence, there will be no disruption in the normal functioning of the company. Over the last few years, Karvy has beefed up its systems and processes to prevent such situations in future," Karvy said in a statement.
Last week, Sebi had passed a similar order against another group company Karvy Stock Broking for its involvement in the same IPO case.
