SEBI on Tuesday barred Brooks Laboratories and its five senior executives from participating in the securities market for non-compliance to initial public offer (IPO) disclosure norms.
Mumbai: SEBI on Tuesday barred Brooks Laboratories and its five senior executives from participating in the securities market for non-compliance to initial public offer (IPO) disclosure norms.
Today's order follows an interim direction issued by SEBI to the company and its executives on December 28, 2011 after which an opportunity was provided to them to present their case.
In the final order, Securities and Exchange Board of India (SEBI) upheld its interim order passed against these entities.
"The directions issued against Brooks Laboratories, its Chairman Atul Ranchal, Managing Director Rajesh Mahajan, CEO Durga Shankar Maity, erstwhile Company Secretary and Compliance Officer Parvinder Kaur and CFO Ketan Shah, vide the ad interim ex-parte Order dated December 28, 2011 in the matter is confirmed," SEBI said today.
It said that the directions would "continue to be in force till further orders from SEBI."
The regulator has vacated the interim directions issued against the company's former independent directors-- Monika Sabharwal and Lalit Mahajan--with immediate effect.
SEBI through its exparte ad-interim order dated December 28, 2011, restrained the company and these seven officials from accessing the securities market and further prohibited them from buying, selling or dealing in securities market, directly or indirectly, till further orders.
The preliminary investigation had found that the proceeds from Brooks Laboratories' IPO were transferred to various entities with a likely purpose of siphoning off or diversion of funds.
Prima facie it was also revealed that the company had not disclosed information in the draft prospectus with respect to the decision to avail Inter Corporate Deposits.