Some time back, SEBI had unearthed irregularities in the IPO market.

Certain key operators were opening a large number of fictitious demat accounts and cornering a large portion of shares reserved for the retain segment.

SEBI had setup a committee under Justice D. P. Wadhwa, to identify the "victims" of these irregularities and recommend a procedure to compensate them.

The committee has finally finished its investigation.

Here are some of the findings:

• The total unjust gains works out to about Rs. 95.69 Crores across the 21 IPO's under consideration.
• Value of the holdings (at the end of October 2007) in the frozen demat accounts of the key operators and financiers is Rs.147.85 Crores.
• The balance in the bank accounts of operators / financiers frozen by CBI is Rs. 1.2 Crores.

The committee has suggested that all victims of this scam should be compensated.

According to the report, the compensation amount should depend on the number of shares that the deprived victim could have got from his IPO application and difference between the closing price on the stock on listing day and the IPO price.

This is just a report by the committee. It's not a legal order.

It is not necessary that SEBI will follow any of the recommendations of the committee.

Those involved in the scam, will surely be going to the courts.

It may be years before any compensation reaches the retail investors.

Here is list of 21 IPO's where the cornering of shares was observed:

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SEBI has started disbursing the disgorged money, recovered from IPO manipulators, to investors.

Source: SEBI hands out disgorged money back to investors.

I feel so lucky.

I have been compensated. I will party now.

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5 star or 3 star or outside of India .