The Securities Appellate Tribunal (SAT) has upheld the capital market regulator’s order against Link Intime India in a matter related to the irregularities in public issues — commonly known as the IPO irregularities scam — between 2004 and 2007. The order is significant as it is believed that the ruling could impact other appeals related to the IPO scam.
“In the face of hundreds of proved or admitted mistakes which are rather serious in nature, the tribunal does not find it a fit case for exercising its discretion to reduce the penalty by modifying the impugned order in any manner whatsoever,” stated the 14-page order by the tribunal.
Last year, the Securities and Exchange Board of India (Sebi) had imposed a penalty of R3 lakh on Link Intime for committing various mistakes as registrar to an issue (RTI) and share transfer agent (STA). The fine was also imposed for irregularities in bank schedules and delay in redressing investor grievances by it.
In early 2007, Sebi conducted an inspection into certain affairs of Link Intime while managing seven IPOs between 2004 and 2007. The inspection revealed a large number of discrepancies, which, according to Sebi, were mainly due to deficiencies in the registrar's system.
“The samples proved it beyond doubt that there were blatant, glaring and unpardonable mistakes repeatedly committed by the appellant (Link Intime) in the seven IPOs,” Sebi said in its submissions. Hundreds of mismatches were found on record, multiple allotments of shares were made to one individual in many cases, it added.