The Securities and Exchange Board of India (Sebi) has slapped a show cause notice on three lead managers to the Rs 36.40-crore initial public offering (IPO) of Balaji Telefilms Ltd (BTL) in October 2000.
A Sebi enquiry officer has found that the book running lead manager J M Morgan Stanley and co-book running lead managers ILFS Merchant Banking Services and Triumph International Finance violated merchant banking regulations and made misstatements in the offer document of BTL.
The proposed merger of BTL with Nine Network Entertaining India Pvt Ltd (NNE) in November 2000, which ultimately was called off, has cast its shadow on the three merchant bankers involved in BTL