The Securities and Exchange Board of India (Sebi) on Monday said it will look for an external legal opinion on whether the board of Sebi has the right to scrutinize the orders of special committee passed after the quasi-judicial proceedings against NSDL. The board has decided to keep back the committee's orders till opinion. The committee was set up after CB Bhave, former NSDL chairman, took over at Sebi.
The case deals with Sebi's investigations into 21 IPOs between 2003 and 2005. Sebi's investigate revealed that the shares, which was reserved for retail investors were illegally acquired by various entities through thousands of untrue applications. The regulator want advice of legal counsel on whether the committee has acted within the framework and terms of reference established by the board resolution.
|Source: Asian CERC|