SEBI reviews IPO process, bans 7 firms | india | Hindustan Times
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SEBI reviews IPO process, bans 7 firms

india Updated: Dec 29, 2011 23:09 IST

The market regulator Securities and Exchange Board of India (SEBI) is reviewing the process for initial public offerings, its chairman said on Thursday, a day after it banned seven small companies from fund-raising for what it said were IPO rule violations.

"We are currently reviewing the entire IPO process, including shortening the timeline for the entire process," UK Sinha told a television news channel.

SEBI said on Wednesday a probe revealed misuse or diversion of IPO proceeds, inadequate documentation and due diligence and possible trading violations on the day of listing.

The IPOs were launched between July and November and had raised about Rs 4.5 billion .

It also banned the directors of the seven companies from dealing in the securities market and told some of the merchant bankers they would not be able to handle new capital issues until further notice.

Shares in the companies - PG Electroplast, Brooks Laboratories, RDB Rasayans, Taksheel Solutions, Tijaria Polypipes, Onelife Capital Advisors and Bharatiya Global Infomedia - fell 5-17% on Thursday in a Mumbai market that was down 1%.

Some of the companies could not be reached for comment.