Sebi dispenses recovered funds to investors hit by IPO irregularities

SEBI - Investors, who lost out on their initial public offering (IPO) opportunities almost a decade ago, will be getting some portion of their amount this week.

The Securities and Exchange Board of India(Sebi) has started distributing recovered amount to investors who were affected by IPO irregularities.

The regulator on Thursday said it has initiated the second tranche of distribution of Rs . 18.06 crore to 4.63 lakh investors.The amount would be distributed to investor across the country on December 18,2015.

"Wherever the bank details of the eligible investors are available,the amount would be credited in the said account with an intimation to the investors. In the cases where bank details are not available, the cheques would be sent to the last known address of the investors," Sebi said in a statement posted on its website."Sebi is continuing its recovery process by identifying assets of the defaulters etc for recovering and distributing the same to the remaining investors," it said.

In April 2010, Sebi had already distributed Rs. 23.28 crore to 12.75 lakh investors,out of which 7.99 lakh investors were paid the full eligible amounts.

In the current tranche-2 exercise, the regulator is distributing amounts to those investors to whom partial amount was paid earlier and are entitled to receive additional amounts.