Three Companies Get Relief From SEBI Demat Ban

Jul 29,2006 00:00 by Newsdesk
Market regulator SEBI has lifted a ban imposed on IDBI Bank Ltd, ING Vysya Bank and Infrastructure Leasing and Finance Company (IL&FS) from opening new demat accounts which was imposed on the three entities in its interim order on IPO scam for their failure to adhere to the Know Your Clients (KYC) norms.

The three were among the several firms named by SEBI in the IPO investigation report, which saw people opening multiple demat accounts under same address to corner shares earmarked for retail investors during IPOs.

While lifting the prohibition on new account opening, the SEBI Whole-Time Member, T.C. Nair, in separate orders, however, said that the issue was not a closed chapter as a SEBI-appointed Enquiry Officer was looking into the matter.