'Ban to continue on entities in Onelife Capital Advisors' IPO'
Sebi, through an interim order in December 28, 2011, had barred OCAL and various executives from the securities market while Atherstone Capital Markets Ltd (ACML) had been prohibited from taking up any new merchant banking assignments for the alleged irregularities in OCAL's initial public offering.
Among the prohibited entities are -- OCAL and its five directors, ACML and its three senior officials, Fincare Financial & Consultancy Services, Precise Consulting & Engineering.
Passing an order on Wednesday, Sebi said "...OCAL, its directors, Precise, Fincare and ACML, its managing director and its compliance officer, have not made plausible reasoning/explanation for their conduct and the allegations levelled against them.
"...no intervention is called for, at this stage, in either vacating the interim directions or modifying it, with respect to the said entities/persons," it added.
Sebi (Securities and Exchange Board of India) had initiated a probe after the shares of OCAL were issued at premium and the IPO was over-subscribed despite having poor fundamentals.
OCAL came out with an IPO in September 2011 to raise Rs 36.85 crore.
Preliminary investigations revealed that OCAL had made mis-statements in the offer documents and had utilised the IPO proceeds for purposes other than the objectives of the share sale as stated in the Red Herring Prospectus (RHP).
It was also observed that OCAL had transferred Rs 15.54
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