The Securities Appellate Tribunal (SAT) asked the Securities and Exchange Board of India (SEBI) on Wednesday to pass final orders in two weeks in two cases of IPO irregularities, as more than seven months have lapsed since interim penalties were imposed.
While one case is related to investigations by SEBI in the initial public offer (IPO) of RDB Rasayans Limited, the other relates to alleged irregularities in the IPO and trading of the shares of PG Electroplast Limited.
The RDB Rasayans IPO case is primarily focused on disclosures made in the offer documents, the bidding pattern, trading on first day of listing and utilisation of IPO proceeds. SEBI, through its interim order in Dec held back the merchant bankers from new assignments or involvement in any new public offer from the securities market till further orders.
The merchant bankers later approached SAT, stating that SEBI’s action of not passing a final order despite the lapse of more than seven months “calls for setting aside the impugned order.”