2. The agent (individual or corporate) acquires hundreds of photos and creates fictitious names and fake identity documents with a common address.
3. These are used to open benami bank—and demat—accounts with a bank and depository participant. They are made to look like accounts of retail investors.
4. The agent uses fictitious names/accounts to apply in IPOs. Lead managers failto weed out multiple applications. Registrar to the issue processes them.
5. Many of the benami applicants get allotments and shares are credited to their demat accounts. The agent moves them to its own demat account.
6. The shares are transferred to the demat accounts of the financier, who sells all the shares on the listing date. The financier gets an illegally derived profit.
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