India Bulls to challenge the SEBI order

MUMBAI: India Bulls Securities said it would appeal against the Sebi order, which debarred it from dealing in the equity market.

"We held 13,939 shares across 559 accounts of our clients on margin during an IPO as per SEBI guidelines. But Sebi assumed that we had used these accounts to corner a portion of the IPO. We have been pulled up for complying with the law," Gagan Banga of India Bulls said.

Meanwhile, Investor Grievances Forum (IGF) President Kirit Somaiya has welcomed SEBI'S decision on IPO demat scam and has demanded RBI and the Government to act quickly and recover the financial profits from scamsters and distribute that among the small investors.

Reacting to the SEBI order, Anagram Securities and Stock Broking CEO Darshan Mehta said the company was consulting legal advisors to respond.

"We are consulting legal advisors and we will act accordingly," he said. He said SEBI did not give any prior notice to the company nor its officials were interrogated.

"We had no notice. There were no intimation and show cause notice from SEBI. None of our officials were even interrogated. The company which has been mentioned in Anagram Securities do not even have a DP account," he said.

Karvy Stock Broking CEO C Parthsarathy refused to comment on the issue. "I have not seen the order and, hence, can't comment," he said.

Motilal Oswal Chairman Motilal Oswal also refused to comment stating he had not seen the order.