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- By Parinda News Bureau, February 23, 2006, 14:32 IST
The Central Bureau of Investigation (CBI), which has been investigating the Rs 32-crore IPO scam, on Wednesday raided 21 premises of brokers and bank officials, in three cities. In Mumbai the CBI officials raided five premises.
Arrest have yet to be made. The CBI has registered an FIR but sources in the CBI said it is not planning to effect any arrest immediately. However, it seized documents, including applications for shares and IPO allotment, from the premises it has raided. Some of the documents are believed to be incriminating, a CBI source said.
The CBI is focusing on the probable role of lead managers of the issue and the role played by promoters, if any.
The IPO scam was related to the issue of shares of Infrastructure Development Finance Corp (IDFC) and Yes Bank. CBI registered the FIR on the basis of information supplied by Sebi and the stock exchange. Sebi had noted certain alleged irregularities in the issue of IPO shares in the recent past.
The primary information is that a few individuals have opened thousands of demat and bank accounts under fictitious names, and even under fictitious PAN cards to avail more shares than legitimately due to them.
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