SEBI revokes ban against 17 entities
Mumbai: Market regulator SEBI Friday revoked the ban against 17 entities that restrained them from the securities market following alleged irregularities in the initial public offering of Tijaria Polypipes.
In the wake of alleged irregularities in the company's initial public offering (IPO), SEBI in December 2011 had barred the 17 entities including four stock brokers from dealing in securities market till further directions.
SEBI, in an order today, said it was revoking the interim order against 17 entities with immediate effect, while it has ordered proceedings against 15 entities following the completion of the investigation.
"Considering the fact that these entities have already undergone prohibition from dealing in securities...The interim directions against them should be revoked at this stage," SEBI said.
In the case of two entities -- Naveen Taparia and Champak Pujara -- SEBI has revoked the ban as well as disposed of the proceedings initiated against them for lack of evidence.
The Tijaria Polypipes' 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).