Comments
The Securities and Exchange Board of India on Wednesday issued a series of ad interim ex-parte orders against seven companies, their directors and their merchant bankers and lead managers to the issue in the matter of price manipulation on the listing day of the companies' initial public offerings.
The IPOs of Taksheel Solutions, RDB Rasyans, Onelife Capital Advisors, Brooks Laboratories, PG Electroplast, Tijaria Polypipes Ltd and Bharatiya Global Infomedia Ltd were investigated by the SEBI for price manipulation on listing day. The share prices of Taksheel Solutions, RDB Rasyans and Brooks Laboratories plunged by 62, 66 and 40 per cent respectively on listing days. Those of Brooks Laboratories and PG Electroplast surged 33 and 96 per cent.
SEBI found most of these companies had been involved in using inter-corporate deposits (ICDs) which were diverted to other entities who further funded the buying of shares on listing day. SEBI has barred the seven companies from raising capital from the securities market until further directions. The market regulator has also barred these companies and their directors from transacting in the securities market. The ICDs have been ordered to be called back, while the unspent IPO proceeds will have to be deposited in an interest-bearing escrow account with a scheduled commercial bank. The merchant bankers and lead managers have been prohibited from taking on new assignments till further orders.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.