The Securities and Exchange Board of India has so far collected over Rs 3.5 crore (Rs 35 million) through consent orders passed in the initial public offer share allotment scam of 2006.
Sebi wholetime members T C Nair and M S Sahoo passed the 26th such consent order on October 31, asking Bansilal Mehta and Chimanlal Shah to remit Rs 4,26,000.
Mehta and Shah 'were alleged financiers to key operators for cornering shares in the IPO of IDFC', the order said. The regulator had earlier prohibited them from buying, selling and dealing in securities.
So far, the regulator has settled 128 cases through consent orders.
A consent order is a system of settling disputes in capital markets through an agreement between a regulator and an accused through a penalty or a fine.
Earlier this month, Sebi had asked one of the alleged financiers and key operators in the IPO scam, Kelan Atulbhai Doshi, to pay the disgorgement amount of Rs 2.5 crore (Rs 25 million) in addition to Rs 500,000 as settlement charges.
This was also the highest penalty that Sebi has ever asked anyone to pay up among the IPO scam consent orders. Sebi had signed the first set of consent orders in June with members of the Dadia family, who were identified as errant financiers in the IPO scam.
The amount collected gets deposited into the Consolidated Fund of India and does not get ploughed back to the capital market.
Entities that request for a consent order have to furnish a written waiver,