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Sebi probing ‘mule’ accounts’; 3 IPO applications on the radar

Indian Express  

The Securities and Exchange Board of India (Sebi) is probing cases of mule accounts and inflated initial public offering (IPO) applications which are meant to jack up share sale subscription numbers.There are three cases which have come to the notice of the capital markets regulator. Some of the merchant bankers who are involved in such unauthorised activities are also under Sebi’s radar.A mule account includes a trading account maintained with a stock broker or a dematerialised or bank account linked with such trading account in the name of a person, where the account is effectively controlled by another person.Sebi is also probing the practice of inflating the IPO application numbers to give an impression of high subscriptions.