Rejecting the Opposition demand for a Joint Parliamentary Committee probe into demat share scam, the government on Tuesday said in the Rajya Sabha that Securities and Exchange Board of India was examining the matter and strictest possible action would be taken against those involved in the irregularities.
Assuring the House during the Question Hour that no fake share had been dematerialised, Finance Minister Jaswant Singh said demat had been done within the listed capital and not beyond the issued capital.
Responding to supplementaries, he said Sebi was looking into the complaint of issue of excess dematting of shares and added those involved in any irregularities at any level would face strictest possible action.
Stating that there was a flaw between dematting of shares and their listing, he said efforts were underway to rectify it and the Department of Company Affairs had also been asked to take prompt action. "We will correct the shortcoming between dematting and listing as early as possible," he said.
Singh said in case of a particular depository, 27 companies were admitted into the demat system and their equity was dematerialised without obtaining appropriate 'in-principle' approval from concerned stock exchanges.
Sebi has directed the depositories to put up a coordinated effort along with the National Stock Exchange and Stock Exchange, Mumbai, to reconcile the demat figures and report the measures that need to be taken in this regard, he added.