The markets regulator Sebi on Monday for the first time disbursed money, amounting to over Rs 20 crore--a part of the sum collected from the IPO scamstersto the investors who had suffered losses in the public issue scam of 2003-05.

The disbursed amount is the first set of cheques to be handed over to 12.75 lakh investors identified by a committee set by the Securities and Exchanges Board.

In the first instance, 4.75 lakh investors, who are eligible for a reallocation amount of over Rs 300 is being paid, which amount to Rs 14.27 crore, while about 7.99 lakh investors have been identified as eligible for a reallocation amount of more than Rs 20 but less than Rs 300, toatalling Rs 9.02 crore.

"This is the first step in the reallocation process and as further disgorgement amount is realised further reallocation will be made," Sebi said in a statement.

Sebi said, however, keeping in view administrative costs involved, investors who are eligible for reallocation amount of Rs 20 or less, would not receive anything. There are 83,112 investors who are eligible for reallocation amount of Rs 20 or less, it said.

Sebi had investigated certain irregularities in the transactions in the shares issued through 21 IPOs during the period 2003-2005, before their listing.

Following the scam, a committee was set up by Sebi under the chairmanship of former supreme court judge DP Wadhwa to advise and recommend the procedure of identification of persons who have been deprived in these 21 IPOs and the manner in which reallocation of shares to such persons should take place.

The committee quantified of the amount of gains associated with the number of shares allotted to applicants who had illegally cornered shares in the IPOs.