2. Yes Bank IPO
Yes bank Issue opened on June 15, 2005.
The total issue amount was 31500 lakhs.
The issue size was 700 lakh shares and 1.75
Crores Shares 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 same
Modus operandi for getting higher allotment of shares
in the public issue of yes bank.
These people opened many DEMAT account and
applied for the shares from many BENAMI accounts.
This scam involved many crores of rupees in
application money.
Ms Rupalben Panchal was one of the biggest player
in this scam.
Ms Rupalben Panchal is among the 13 individuals
and entities who had allegedly worked out an
ingenious method to get higher allotment in public
issues from the retail segment by opening benami
demat accounts.
4. Modus operandi
In IPO
If you make an application as a high net worth
individual (HNI), the chances of allotment is low.
But If, uses the same money and if you make
more applications through BENAMI accounts, the
chances of allotment rise at least five times.
In Yes bank IPO scam a group of individual did
precisely that.
They channelized their funds into the retail
segment and get higher allotment.
5. Gimmick of Rupalben in Yes Bank
IPO
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 Bharat
Overseas Bank, Worli, Mumbai
9,47,250 shares allotment to these fictitious accounts
Rupalben cornered & sold 8,39,500 shares @
Rs61.40
Rupalben received funds from 8 entities Prior to the
IPO of Yes Bank Ltd.- Devangi Dipak Panchal, Rajan
Dapki, Zenet Software Ltd., Excell Multitech Ltd.,
Taurus Infosys Ltd., Seer Fin lease P Ltd., Barghav
Panchal (HUF) and Jayantilal Jitmal
She in turn transferred these funds to 6315 entities
who had utilized these funds for making applications
6. Syndicate of Panchal-Investors
Roopalben made off market transfers on 11.07.05
to the following entities:
Seer Finlease P.Ltd. - 3,32,875 shares
Excell Multitech Ltd. - 1,61,180 shares
Devangi Dipak bhai Panchal - 2,20,000 shares
Zenet Software Ltd. - 92,855 shares
Tauras Infosys Ltd. - 80,590 shares
Rajan Vasudev Dapki - 44,100 shares
7. SUGANDH Investment – Yes
Bank
1315 Bogus applications
Allotment of 1,97,250 shares
Profit of Rs 32,26,492
Modus-operandi similar to Rupalben
10,669 Bogus demat a/c opened on16 Aug. 2004
Ms. Roopalben Panchal 6483
Sugandh Estates and Investments Pvt. Ltd.4186
TOTAL 10,669
8. Analysis
The IPO of yes Bank came on 15 June 2005 the stock
was listed at Rs 45, later on moved at Rs.61.75 which
move till 2006 to Rs 105.
The consistent upward movement of the stock shows
the stock was a consistent performer and within 1st
year of its listing it gave a return of 100%.
Then the stock had a small downfall till 21 July 2006
to 75.10 an picked from there again to touch the mark
of Rs 250 till 2008.
In 2009 fell to 43.8 then started rising and touched Rs
507 on 16 may 2013
On 10 OCT 2013– Rs 341.85 14
9. Karvy, The Culprit
More than 95% bogus fictitious Demat accounts
have been opened by Karvy DP.
Karvy has accepted payment and also refunded
the amount to the scamsters .
It is unearthed that Karvy was issuing single
cheque to Panchals, Sugandh Investment for
these benami, forged applications.
The Syndicate of Karvy, Bharat Overseas Bank,
investors, Panchals was transferring refunds
belonging to thousands of bogus applicants with
help of Electronic Clearing System directly in the
bank accounts of Panchals & Others
10. SEBI ACTION
Panchals & Others directed not to buy, sell or
deal in Yes Bank and other Companies Shares,
ensuing IPOs, directly or indirectly.
NSDL is directed to ensure that the 6315 demat
a/c of Roopalben and 1315 demate a/c of
Sugandh not utilized for manipulation of IPO in
future.
NSDL is directed to undertake a comprehensive
inspection of Karvy-DP .
NSDL and CDSL are advised to enhance their
surveillance .
