2. Yes Bank IPOYes bank Issue opened on June 15, 2005.The total
issue amount was 31500 lakhs.The issue size was 700 lakh shares and
1.75 CroresShares were Reserved for Small Investors.It was listed
at BSE & NSE July 12.The share price was at Rs 45 when it was
listed.
3. Overview of the scam There were thirteen people who used the
sameModus operandi for getting higher allotment of sharesin the
public issue of yes bank. These people opened many DEMAT account
andapplied for the shares from many BENAMI accounts. This scam
involved many crores of rupees inapplication money. Ms Rupalben
Panchal was one of the biggest playerin this scam. Ms Rupalben
Panchal is among the 13 individualsand entities who had allegedly
worked out aningenious method to get higher allotment in
publicissues from the retail segment by opening benamidemat
accounts.
4. Modus operandi In IPO If you make an application as a high
networth individual (HNI), the chances of allotment islow. But If,
uses the same money and if you make moreapplications through BENAMI
accounts, thechances of allotment rise at least five times. In Yes
bank IPO scam a group of individual didprecisely that. They
channelized their funds into the retail segmentand get higher
allotment.
5. Gimmick of Roopalben in Yes BankIPO 6,315 Bogus-fictitious
applications, Demat A/cs,Bank A/cs Similar Addresses of Ahmedabad
for Demat A/c On all applications similar address of BharatOverseas
Bank, Worli, Mumbai 9,47,250 shares allotment to these
fictitiousaccounts Rupalben cornered & sold 8,39,500 shares @
Rs61.40
6. Roopalben & Investors Roopalben received funds from 8
entities Prior tothe IPO of Yes Bank Ltd. Devangi Dipak Panchal,
Rajan Dapki, ZenetSoftware Ltd., Excell Multitech Ltd.,
TaurusInfosys Ltd., Seer Finlease P Ltd., BarghavPanchal (HUF) and
Jayantilal Jitmal She in turn transferred these funds to
6315entities who had utilized these funds for makingapplications in
the IPO of YBL.
7. Syndicate of Panchal-InvestorsRoopalben made off market
transfers on 11.07.05 to thefollowing entities: Seer Finlease
P.Ltd. - 3,32,875 shares Excell Multitech Ltd. - 1,61,180 shares
Devangi Dipakbhai Panchal - 2,20,000 shares Zenet Software Ltd. -
92,855 shares Tauras Infosys Ltd. - 80,590 shares Rajan Vasudev
Dapki - 44,100 shares
8. SUGANDH Investment Yes Bank 1315 Bogus applications
Allotment of 1,97,250 shares Profit of Rs 32,26,492 Modus-operandi
similar to Rupalben
9. 10,669 Bogus demat a/c opened on16 Aug. 2004Ms. Roopalben
Panchal 6483Sugandh Estates and InvestmentsPvt. Ltd.4186TOTAL
10,669
10. SEBI ACTION Panchals & Others directed not to buy, sell
or dealin Yes Bank and other Companies Shares,ensuing IPOs,
directly or indirectly. NSDL is directed to ensure that the 6315
dematea/c of Roopalben and 1315 demate a/c ofSugandh not utilized
for manipulation of IPO infuture. NSDL is directed to undertake a
comprehensiveinspection of Karvy-DP . NSDL and CDSL are advised to
enhance theirsurveillance .
