Mumbai: The Supreme Court on Monday while hearing the appeal of Dhaval Mehta, the prime accused in the Initial public offering (IPO) scam of 2005, issued a notice to market regulator Securities and Exchange Board of India (Sebi) and asked Mehta to deposit the penalty amount of Rs1 crore with the apex court within eight weeks.
Mehta had moved the Supreme Court challenging the Securities Appellate Tribunal’s verdict that upheld Sebi’s decision to bar him from the securities market for two years and imposition of penalty. The regulator had found that he along with the non-banking finance company Ashmi Financial Consultancy Pvt. Ltd had cornered shares in the IPOs of Suzlon Energy Ltd and Infrastructure Development Finance Co. (IDFC) through fictitious demat accounts. The next hearing is in April.