The market regulator has started distributing to investors the third tranche of amounts disgorged or recovered from irregularities in initial public offerings (IPOs). This is following the regulator’s investigations into 21 IPOs during 2003-05, and its ordering certain persons to disgorge illegal gains.

In a press release issued on August 24, the Securities and Exchange Board of India (Sebi) said that on August 17 it started the distribution of Rs 14.87 crore to 2.58 lakh investors, which is the third tranche of the disgorged/recovered amount. The release added, “In the current exercise, SEBI is distributing amounts to those investors to whom partial amounts were paid earlier and are entitled to receive additional amounts. 1,15,465 investors out of 2,58,301 investors would be paid the full eligible amount and the remaining 1,42,836 investors would be paid in part.”

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The process of identifying the claimants was recommended by the Wadhwa Committee, which was under the Chairmanship of Justice DP Wadhwa, a former judge of the Supreme Court of India. With the process, people who were deprived in the said IPOs were identified and the manner in which reallocation of shares to such persons should be done was decided.

The release added, that as per the recommendations of the Wadhwa Committee 13.57 lakh persons had been identified as eligible investors for distribution. SEBI has already distributed Rs 23.28 crore in April 2010 and Rs 18.06 crore in December 2015. Of the said 13.57 lakh investors, 10,01,890 were paid the full eligible amount and 97,657 were excluded due to the costs involved.

For the distribution of the third tranche, wherever the bank details of the eligible investors are available, the amount is credited to their bank accounts with an intimation to the investors. In cases where bank details are not available, payment warrants are being sent to the last known address of the investors. The list of eligible investors along with the amount to be credited/sent by SEBI is available on the SEBI website: https://www.sebi.gov.in/sebi_data/commondocs/aug2023/List_of_investors_Tranche_3_p.pdf

Investors, who have not received credit intimation and have not received the credit in their bank account or have any other queries relating to payment, revalidation, modification, etc., may raise such queries on or before January 31, 2024, at the office of the Facilitator Registrar – TSR Consultants Private Limited, Unit SEBI-IPO Reallocation – Tranche 3 at C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400 083 (email id: iporeallocation3@tcplindia.co.in) or at the office of Recovery and Refund Department, SEBI Bhavan II, Plot No. C-7, Block ‘G’, Bandra Kurla Complex, Bandra (East), Mumbai–400051 (email id: ipotranche3@sebi.gov.in).