entities, including Karvy Stock Broking. In the order, Sebi had barred the depository participant from opening fresh demat accounts.
Sebi had conducted a preliminary examination upon noticing certain irregularities with respect to IPOs of different companies.
These entities were found to have cornered the IPO shares by making fictitious applications in the retail category through various fictitious/ benami applicants.
Pursuant to the allotment, the shares were transferred to the demat account of these entities.
Further, it was also revealed that these key operators had transferred the shares through off-market deals to ultimate beneficiaries, who were the financiers in the process.