SEBI FINES IGSL DIRECTORS , CFO AND CS FOR VIOLATION OF SEBIs ICDR REGULATIONS
FALSE INFORMATION IN IPO DOCUMENTS BY INVENTURE GROWTH AND SECURITIES LTD (IGSL)
Regulator SEBI barred Inventure Growth and Securities as well as its directors and other senior officials from the capital markets for four years for concealing “material information” and making false and inadequate disclosures in the IPO documents.
MISAPPLICATION OF IPO FUNDS
The regulator, which conducted a probe into the affairs of Inventure Growth and Securities Ltd (IGSL) in relation to its initial public offer (IPO), found that the firm had misutilised the proceeds received from the initial share-sake by applying them towards activities not disclosed in the prospectus.
FALSE INFORMATION IN IPO TO RAISE BRIDGE LOANS
Besides, IGSL, which came out with its IPO in July 2011, made false statements in its prospectus with respect to raising bridge loans and other financial arrangements, the Securities and Exchange Board of India (Sebi) said in an order.
DIRECTORS , CFO AND COMPANY SECRETARY MADE FALSE AND INADEQUATE DISCLOSURES –SAYS SEBI
Further, the regulator said that the company’s managing director, nine directors, chief financial officer and compliance officer gave a wrong certificate in the prospectus and were also responsible for concealing material information, and making false and inadequate disclosures in the IPO documents.
PUNISHMENT FOR DIRECTORS , CFO & COMPLIANCE OFFICER
Those facing the heat are the firm’s managing director Nagji K Rita; directors — Virendra D Singh, Kanji B Rita, Vinod K Shah, Pravin N Gala, Arun N Joshi, Srinivasaiyer Jambunathan, Harshavardhan M Gajbhiye, Ajay Khera and Deepak M Vaishnav — CFO Arvind Gala and company secretary and compliance officer Bhavi Gandhi.
VIOLATIONS OF ISSUE OF CAPITAL & DISCLOSURE REQUIREMENTS (ICDR)
By indulging in such activities, the company and its officials violated issue of capital and disclosure requirements (ICDR) regulations.
Accordingly, Sebi has barred the company, its directors, CFO, company secretary and compliance officer from the securities market for four years.