Mumbai, July 28: The Securities and Exchange Board of India (Sebi) today lifted its ban on IL&FS, IDBI Bank and ING Vysya Bank on opening new demat accounts in the aftermath of the IPO scam.

However, in his post-hearing order, Sebi whole-time director T.C. Nair said investigations would continue into the scam, which unearthed multiple demat accounts opened by these depository participants.

In its reply to the charge of opening 3,421 multiple accounts, IL&FS had said the account holders had entered into financing arrangements with the company and for recovery of dues from the clients, the address of IL&FS was captured as correspondence address.

However, permanent addresses of the beneficiary owners were available with IL&FS.

ING Vysya Bank said the 544 afferent accounts constitute only 0.66 per cent of the total demat accounts with the bank and such a low percentage of aberration is attributed to adequate systems, controls, processes and training programmes.

It also said these accounts have been frozen since April 28, 2006.

IDBI Bank said its due diligence of the 1,017 afferent accounts showed no breach of ‘know your client’ guidelines in opening of the accounts.

The bank also handed over few demat account forms to Sebi and said the regulator can verify other demat account opening forms.

In its ad-interim ex-parte order dated April 27, 2006, the market regulator had prohibited 12 depository participants, including these three entities, from opening fresh demat accounts till further orders.