IPO Irregularities: SEBI Starts Distribution of Disgorged and Recovered Money to Investors
Moneylife Digital Team 24 August 2023
Securities and Exchange Board of India (SEBI) has initiated the third tranche for distribution of Rs14.87 crore to 258K (thousand) investors from the disgorged and recovered amount in the matter of initial public offering (IPO) irregularities from 2003 to 2005.
In the current exercise, SEBI is distributing amounts to those investors to whom partial amounts were paid earlier and are entitled to receive additional payments. Over 115K investors out of 258K investors would be paid the full eligible amount, while the remaining 143K investors would be paid in part, the market regulator says in a release.
SEBI had investigated certain irregularities in the shares issued through 21 IPOs between 2003 and 2005 before their listing on the stock exchanges. 
Under the chairmanship of justice DP Wadhwa, a former judge of the Supreme Court, a committee was set up, which recommended the procedure of identification of persons who have been deprived in the said IPOs and how reallocation of shares to such persons should take place. 
As per the recommendations of the Wadhwa Committee, 1.35mn (million) people had been identified as eligible investors for distribution. SEBI has already distributed Rs23.28 crore in April 2010 and Rs18.06 crore in December 2015. 
Over 1.02mn investors out of the said 1.35mn were paid the full eligible amount and 97,657 were excluded due to the costs involved, SEBI says.
It says, "Wherever the bank details of the eligible investors are available, the amount is being credited in their bank accounts with an intimation to the investors. In cases where bank details are unavailable, payment warrants are being sent to the last known address of the investors. The list of eligible investors, along with the amount to be credited or sent  is available on SEBI website https://www.sebi.gov.in/sebi_data/commondocs/aug-2023/List_of_investors_Tranche_3_p.pdf."
Investors who have received credit intimation and have not received the credit in their bank account or have any other queries relating to payment, revalidation, and modification need to raise it on or before 31 January 2024 at the office of the Facilitator Registrar - TSR Consultants Pvt Ltd, Unit SEBI-IPO Reallocation - Tranche 3 at C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai - 400 083 (email id: [email protected]) or at the office of Recovery and Refund Department, SEBI Bhavan II, Plot No. C-7, Block 'G', Bandra Kurla Complex, Bandra (East), Mumbai-400051 (email id: [email protected]).
10 months ago
Good action but from the list it is difficult to make out whether any amount has become payable to me as there are multiple entries showing my name. To be sure about the payment, it would have been better to show the PAN number also. The information is of little use for persons having common names.
Dilip Modi
10 months ago
Thank you Sucheta mam for clarification. Since a credit appeared in my account earlier this month, I have been asking ICICI to clarify the source of this credit. They in turn asked HDFC who could not say the reason for initiating a credit on behalf of SEBI except "it is for IPO", for which I had not applied for any in last 5 years except for LIC in May 2022. SEBI itself has sent no intimation explaining the action. Who would have thought SEBI is actioning IPOs of 2003 - 2005!
10 months ago
good initiative but it takes a long time to address the issue and by the time govt comes out with it with some resolution lot of sr citizens might not be there and for the next generation they may not be knowing all these details to find the documents for the same and it becomes a long drawn affair .
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