SEBI has begun the third tranche of distribution to investors who had to face irregularities in the issue of shares in 21 initial public offerings during 2003-2005. As per the recommendations of Wadhwa Committee, 13.57 lakh persons were identified as eligible investors for distribution.
SEBI distributed ₹23.28 crore in April 2010 and ₹18.06 crore in December 2015. 10.01 lakh investors were paid the full eligible amount and 97,657 investors were excluded due to the costs involved.
The third tranche, initiated on August 17, will involve distribution of ₹14.87 crore to 2.58 lakh investors from the disgorged/recovered amount. 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 lakh investors would be paid the full eligible amount and 1.42 lakh investors would be paid in part.
“Wherever the bank details of the eligible investors are available, the amount is being credited in 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 regulator said in a release on Thursday