SEBI conducts a fresh hearing on the NSDL case
The Securities and Exchange Board of India (SEBI) has conducted a re-hearing on the National Securities Depository (NSDL) case in order to review the earlier decision of a SEBI committee, which comprised of the non-whole-time board members. The members had decided to dispose off the order against NSDL.
No official statement was issued on the result of the SEBI board meeting on Tuesday. The board which was chaired by the Infosys Technologies director, Mr. Mohandas Pai will announce the decision in the next board meeting.
After looking into the investigations into the Initial Public offerings (IPO) scam during the year 2005, SEBI has criticized NSDL for failing to detect multiple demat accounts on the same name, which were used to reserve shares meant for retail investors.
Although, all the parties admitted their fault but the head of CDSL at that time, Mr. C B Bhave said that the misconduct was the responsibility of the depository participants opening the demat accounts, not the depository which maintains the data on these accounts.
A statement issued from the SEBI stated, "These findings, which have vitiated these two orders, cannot be severed from the rest of the orders."
