Yes bank IPO scam

Yes bank IPO scam

• 1.
  Yes Bank IPO Scam Presentdby – Mr.Vishal Narvekar
• 2.
  Yes Bank IPO Yesbank 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 thescam  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  InIPO 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 Roopalbenin 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 @ Rs 61.40
• 6.
  Roopalben & Investors Roopalben 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 Finlease 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 in the IPO of YBL.
• 7.
  Syndicate of Panchal-Investors Roopalbenmade 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 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 demata/c opened on 16 Aug. 2004 Ms. Roopalben Panchal 6483 Sugandh Estates and Investments Pvt. Ltd. 4186 TOTAL 10,669
• 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 demate 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 .
• 11.
  THANK YOU