After prohibiting seven companies from participating in securities market, the Securities and Exchange Board of India (SEBI) Chairman UK Sinha opined that the entire process for initial public offering of shares is being reviewed while the volatility on the listing day is also being looked at. The regulator is also mulling over the idea of shortening timeline for entire IPO process.
The avowal from SEBI Chairman has after seven companies including PG Electroplast, Brooks Laboratories, RDB Rasayans, Taksheel Solutions, Tijaria Polypipes, Onelife Capital Advisors and Bharatiya Global Infomedia, which recently raised funds in initial public offers, were banned by the regulator for IPO rule violations. SEBI also banned six investment bankers involved with such issues.
The securities market regulator citied reasons like misuse of IPO proceeds, pricing irregularities and inadequate disclosure of information for banning the entities. SEBI took swift action against the entities in order to send out a clear warning in the market that meddling with rules will be subject to serious action.
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