Ban on Indiabulls lifted for time being

Mumbai,April 28 | Updated: Apr 29 2006, 05:40am hrs
Sebi on Friday kept in abeyance its interim order barring Indiabulls Securities from operating in the stock market. The abeyance is subject to verification of its clients and until further directions.

The Indiabulls brass sought post-decisional personal hearing with G Anantharaman, whole-time member, Sebi on Friday, the very next day after he passed a 256-page interim order cracking the whip on the alleged perpetrators of the IPO demat scam.

National Securities Depository Ltd has been asked to verify the details submitted by Indiabulls and submit a report within 15 days, following which a final order will be passed, a Sebi official said.

The regulator clarified that its interim order related only to transactions in the proprietary accounts of Sebi-registered intermediaries and not to transactions on behalf of clients.

Indiabulls made oral and written submissions regarding the receipt of 13,939 TCS shares after its IPO from 559 accounts spread over 81 cities. These shares were transferred to the client margin account of the broking firm for their trading purposes towards meeting margin requirements.