Securities Appellate Tribunal (SAT) today stayed market regulator SEBI's disgorgement order that had asked ten entities, including depositories NSDL and CDSL, to cough up about Rs 116 crore for their role in the IPO scam.

Admitting the appeal by the ten affected parties, SAT's presiding officer Justice N K Sodhi said: "After detailed consideration in the disgorgement order, the operational part of the order has to be stayed."

SEBI's first ever disgorgement order passed on November 21 last had directed the ten entities to pay Rs 115.81 crore within six months for gross violations of know-your-client (KYC) norms in the allotment of shares in 21 IPOs during the period 2003 to 2005.

"We see no urgency for SEBI to go with disgorgement order when the enquiry was still continuing. I think the Board needs to wait and complete the enquiry first and then pass the disgorgement order," Justice Sodhi said. "I find it to be a unique and strange order where quantum of penalty has been determined even before the enquiry has been completed," he said.