Securities and Exchange Board of India (Sebi) has passed an order disposing the adjudication proceedings against Indiabulls Securities in the IPO-Demat scam.

The order was passed after Sebi conducted investigations into the affairs relating to buying, selling or dealing in the shares through the initial public offerings during 2003-05 by companies like Tata Consultancy Services, Gateway Distripacks, Dishman Pharma and Chemicals, Patni Computer Systems and others. 

Many entities had opened several demat accounts to corner shares in the various IPOs by making fictitious applications in the category reserved for retail investors through the medium of thousands of fictitious applicants for the IPOs.

On allotment of shares in the category of retail investors in the IPOs, the said shares were transferred to the demat accounts of these key operators.These key operators subsequently transferred the shares through off market deals to ultimate beneficiaries  who appeared to be the financiers in the process.

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