SEBI settles case against Anagram in IPO scam

MUMBAI: Market regulator SEBI on Monday settled a case against Anagram Securities relating to alleged financing of key operators in the infamous IPO scam after the company paid Rs 10,000.

The case has been settled through a consent order passed by the SEBI, but it does not restrict the market regulator from taking enforcement action like commencing or reopening of the pending proceedings against the firm.

Consent means a settlement between two parties without admitting or denying the guilt.

SEBI can reopen the pending case, if it finds that any representation made by the firm in the consent proceedings are subsequently discovered to be untrue or it has breached any of the clauses of undertakings during the proceedings.

Charge against Anagram Securities was that it acted as a financier to the key operators for making applications for public offers in fictitious and benami names during 2003-05.

The infamous 2003-05 IPO scam relates to corning of shares, meant for retail investors, through fictitious applications by many entities in public offers of firms like IDFC, Jet Airways and Suzlon.

The market regulator passed the order on the recommendations of its High Powered Advisory Committee.