Euro Asian Securities (formerly Lloyds Brokerage), which is proposed to be listed through the offer for sale, will reply to the notice soon, according to the draft offer for sale letter filed with the market regulator. Sebi had conducted the inquiry for the Bombay Stock Exchange and Pune Stock Exchange and the company's books were audited by chartered accountants in July, 1998.

Notwithstanding the Sebi notice, the offerors are charging a hefty premium of Rs 45 on the 59.9 lakh equity shares on offer. Although the primary market no longer fancies finance issues, the offerors - Euro Offshore Investments, Euro Allied, Euro Discover and Dalhousie Securities Pvt - have decided toprice their Rs 32.94-crore offer for sale at Rs 55 per share.

Besides, the company is yet to provide and pay Sebi registration fees based on turnover from 1994 to 1999. The company has also not provided for contingent liabilities in respect of guarantees given by banks to the tune of Rs 25 lakh, capital commitment net of advances of Rs 13.20 lakh and loans and advances of Rs 13.18 lakh paid through a director of the company towards purchase of the residential flat for and in the name of company.

Incorporated in May, 1993, the company has been into equity dealing, money market dealing, equity research and investment advisory. The company has achieved a total income of Rs 16.73 crore for fiscal 1997, Rs 9.03 crore for fiscal 1998 and Rs 10.86 crore for fiscal 1999. The company recorded a profit before tax of Rs 45.53 lakh, Rs 39.61 lakh and Rs 5.25 crore for these respective years. There has been a reduction in total income by 85 per cent in 1998 compared with 1997 whereas total income for the year ended onMarch 31, 1999 increased by 20 per cent.