FM disburses first IPO recovery proceeds among retail investors
12 April 2010
Finance minister Pranab Mukherjee today initiated the process of disbursement of amounts recovered from wrong doers to investors who have been identified as the rightful claimants of the IPO issues.
In the first-ever penalisation of IPO manipulators and recovery of amounts from them, Rs23.28 crore is proposed to be disbursed among 12,74,736 unsuccessful IPO applicants, who were denied the shares in the first occasion.
This is the first time that not only the manipulators are being penalised but also the amount recovered is being redistributed to the persons who were deprived of their gains, Mukherjee said in New Delhi today.
Describing this as a significant milestone, the finance minister expressed the hope that this will go a long way in making the investors feel safe and secure while investing in the stock markets.
"It gives me great pleasure to be here on the SEBI Foundation Day which is aptly being commemorated in the presence of representatives from the community of retail investors. This event underscores the importance of investor protection even when we strive to develop the securities market," Mukherjee said.
Investor protection should remain the cornerstone of any developmental and regulatory steps taken for the development of the securities market, he added.