Mumbai: Market regulator SEBI has declined to revoke the ban restraining Pinac Stock Brokers from the securities market with regard to alleged irregularities in the initial public offering of Tijaria Polypipes.
Declining the plea of Pinac, SEBI said the entity could not justify the manner of its trading related to Tijaria Polypipes' IPO.
"... Submissions made by Pinac do not justify the manner of its trading, thereby providing exit to the allottees in the IPO, the receipt of funds indirectly from Tijaria Polypipes through layered transactions for recouping the losses and the alleged structured/synchronised trades indulged in by Pinac," SEBI said in an order dated October 31.
According to the market regulator, no intervention is called for in either vacating the interim directions or modifying it, with respect to Pinac.
In an interim order last year, SEBI had barred Pinac from buying, selling or dealing in any securities, till further directions.
The IPO was open from September 27-29, 2011.
SEBI had initiated a probe into the fall in price of Tijaria Polypipes' shares on the first day of its listing, October 14, 2011.
Preliminary investigations revealed that the company had diverted substantial part of the IPO proceeds, "through layered transactions", to certain entities who had allegedly provided an exit to the retail allottees/Qualified Institutional Buyers (QIBs).
Pinac was found to be one such entity which had allegedly provided exit to QIBs and /or retail allottees in the IPO.
In the latest order, SEBI noted that the investigation in the matter has been completed and proceedings have been approved to be initiated against Pinac.
First Published: Thursday, November 1, 2012, 22:26