Market regulator Sebi today directed Purshottam G Budhwani , a broker involved in the infamous IPO scam of 2003-05, to deposit over Rs 9.39 crore on unlawful gains made by him. In case of failure to deposit the amount within 45 days, Budhwani shall be barred from the securities market for nine years, the Securities and Exchange Board of India (Sebi) said in an order.
“Purshottam G Budhwani shall disgorge a total amount of Rs 9,39,38,030 comprising of Rs 5,87,11,269 towards unlawful gain made by him and Rs 3,52,26,761 towards simple interest at the rate of 10 per cent per annum for six year (2005-11) on the unlawful gains within 45 days…,” Sebi said.
It added: “In case the aforesaid amount is not received by Sebi within the specified time, Budhwani shall be restrained from buying, selling or dealing in securities market in any manner whatsoever or accessing the securities market directly or indirectly for a further period of nine years…”
In any case, Budhwani has been barred from dealing in the market for a period of three months from today.
Budhwani was charged with involvement in the IPO scam and cornering shares meant for retail investors in 13 initial public offerings by engineering multiple applications.
“He opened 6,685 demat accounts (afferent accounts), in concert with depository participants (DPs), in favour of the afferent persons. All the afferent accounts carried his name,” Sebi said.