Orders in the matter of irregularities in certain recent Initial Public Offers
SEBI had initiated preliminary investigations into certain recent Initial Public Offers (IPOs), on receipt of information of irregularities from various sources. The preliminary investigations carried out so far, focussed on the following main areas:
- Adequacy, accuracy and completeness of disclosures made in the offer document by the company and standards of due diligence carried out by the merchant banker;
- Misutilization/diversion of funds, if any, from the IPO proceeds by the company;
- Possible violations in relation to the bidding/trading pattern in the shares of the company on the day of listing and immediately thereafter and
- Other consequential or related matters.
Based on the findings of the preliminary investigations carried out, Shri Prashant Saran, Whole Time Member, SEBI, has passed ad interim, ex-parte orders dated December 28, 2011 in matters related to the IPOs by the following companies:
2. Brooks Laboratories Limited
6. Onelife Capital Advisors Limited
7. Bharatiya Global Infomedia Limited
The above orders have come into force with immediate effect.
The full text of the orders is available on the website: www.sebi.gov.in
Mumbai
December 28, 2011
Source- SEBI
