Sebi directs Trafiksol ITS Tech to refund investors' money within a week

The market regulator has proposed stringent norms for the listing of SMEs following such concerns in the segment

The Securities and Exchange Board of India (Sebi) on Tuesday directed Trafiksol ITS Technologies to refund the money paid by investors who had been allotted shares in the initial public offering (IPO).

 

Stock exchange BSE has been directed to oversee that the refund is processed within a week. The exchange had halted the listing of the SME firm after concerns raised to Sebi by market participants.

 

While dismissing the submissions by the SME firm to allow listing, Sebi noted that the findings of the investigation including those on alleged false financial statements are yet to be adjudicated.

 

The Rs 45 crore IPO of the software provider for traffic systems was halted amid complaints around use of issue proceeds and wrongful disclosures. The issue had garnered 345 times oversubscription.

 

 

In its order issued on Tuesday, Sebi pointed out to the dubious nature of the third-party vendor from which Trafiksol was to purchase a software utilising nearly 40 per cent of the issue proceeds.  Sebi has concluded that the third-party vendor was a shell entity and alleged that the company tried to cover-up when the vendor’s credentials were examined.

 

The market regulator has proposed stringent norms for listing of SMEs following such concerns in the segment.  

C2C Advanced Systems doubles in debut trade  Shares of C2C Advanced Systems doubled during their trading debut on Tuesday despite regulatory troubles.  Shares of the defence electronics solutions provider ended at Rs 451 as against issue price of  Rs 226 on NSE’s Emerge platform. The SME firm’s listing was delayed after market regulator Sebi had directed the company to appoint an independent auditor to evaluate financial accounts. The company’s Rs 99 crore IPO had received an overwhelming response with over 125 times subscription.  BS reporter    Suraksha Diagnostic fully subscribed on last day  The initial public offering (IPO) of Suraksha Diagnostic Ltd got fully subscribed on the last day of share sale on Tuesday.  The Rs 846 crore IPO received bids for 17 million shares against 13.43 million on offer, translating into 1.27 times subscription, according to data available with the NSE. The portion for qualified institutional buyers attracted 1.74 times subscription while the category for non-institutional investors got subscribed 1.40 times. The quota for Retail Individual Investors received 94 per cent subscription. PTI