<p class="title">Regulator Sebi on Friday barred Acropetal Technologies and its managing director D Ravikumar from the capital markets for 10 years for diverting the funds raised through its initial public offering.</p>.<p class="bodytext">Besides, the regulator has prohibited the company's six senior officials from the capital market for a period ranging from 2-5 years. Further, Sebi has barred several other related entities for seven years.</p>.<p class="bodytext">The individuals facing ban were holding senior positions at the time of the company's IPO.</p>.<p class="bodytext">The Securities and Exchange Board of India (Sebi) suo moto initiated probe in the matter of IPO of Acropetal Technologies Ltd (ATL) to ascertain whether there was any violation of the securities market.</p>.<p class="bodytext">The company came out with its initial share-sale offering to raise Rs 170 crore in February 2011.</p>.<p class="bodytext">It was alleged that a major portion of IPO proceeds was not used for the stated objects and ATL, with the help of various conduit entities, some of whom were directly or indirectly related to the company, had diverted these funds for various purposes, which includes transfer of funds to its own related entities for the purpose of trading etc.</p>.<p class="bodytext">The probe found that ATL has diverted IPO proceeds and did not deploy the funds for stated objects of the issue as disclosed in the prospectus of ATL.</p>.<p class="bodytext">"It is concluded that ATL is liable for diversion of IPO proceeds which has led to the violation of ...PFUTP Regulations... it has significantly deviated from the objects of the issue and not utilising the IPO proceeds as per the objects stated in the prospectus," Sebi said in its 101-page order.</p>.<p class="bodytext">Sebi said these entities also failed to make true and adequate disclosures in the prospectus, which mislead the investors.</p>.<p class="bodytext">Accordingly, Sebi has restrained ATL and D Ravikumar from "accessing the securities market for a period of 10 years ...and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of 10 years".</p>.<p class="bodytext">Also Ravikumar has been prohibited from associating with any listed company or a registered intermediary in any capacity for 10 years.</p>.<p class="bodytext">Besides, the regulator has barred the company's non-executive and independent directors -- Ramdas Janardhana Kamath, Subrahmanya Dandala Kannayya Reddy and Mohan Hosahally Ramakrishna for five years.</p>.<p class="bodytext">In addition, Sebi has banned ATL's CFO S Sudheer, Company Secretary Shobha Sudhakar Acharya and Compliance Officer Jamili Jalaiah for two years. </p>
<p class="title">Regulator Sebi on Friday barred Acropetal Technologies and its managing director D Ravikumar from the capital markets for 10 years for diverting the funds raised through its initial public offering.</p>.<p class="bodytext">Besides, the regulator has prohibited the company's six senior officials from the capital market for a period ranging from 2-5 years. Further, Sebi has barred several other related entities for seven years.</p>.<p class="bodytext">The individuals facing ban were holding senior positions at the time of the company's IPO.</p>.<p class="bodytext">The Securities and Exchange Board of India (Sebi) suo moto initiated probe in the matter of IPO of Acropetal Technologies Ltd (ATL) to ascertain whether there was any violation of the securities market.</p>.<p class="bodytext">The company came out with its initial share-sale offering to raise Rs 170 crore in February 2011.</p>.<p class="bodytext">It was alleged that a major portion of IPO proceeds was not used for the stated objects and ATL, with the help of various conduit entities, some of whom were directly or indirectly related to the company, had diverted these funds for various purposes, which includes transfer of funds to its own related entities for the purpose of trading etc.</p>.<p class="bodytext">The probe found that ATL has diverted IPO proceeds and did not deploy the funds for stated objects of the issue as disclosed in the prospectus of ATL.</p>.<p class="bodytext">"It is concluded that ATL is liable for diversion of IPO proceeds which has led to the violation of ...PFUTP Regulations... it has significantly deviated from the objects of the issue and not utilising the IPO proceeds as per the objects stated in the prospectus," Sebi said in its 101-page order.</p>.<p class="bodytext">Sebi said these entities also failed to make true and adequate disclosures in the prospectus, which mislead the investors.</p>.<p class="bodytext">Accordingly, Sebi has restrained ATL and D Ravikumar from "accessing the securities market for a period of 10 years ...and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of 10 years".</p>.<p class="bodytext">Also Ravikumar has been prohibited from associating with any listed company or a registered intermediary in any capacity for 10 years.</p>.<p class="bodytext">Besides, the regulator has barred the company's non-executive and independent directors -- Ramdas Janardhana Kamath, Subrahmanya Dandala Kannayya Reddy and Mohan Hosahally Ramakrishna for five years.</p>.<p class="bodytext">In addition, Sebi has banned ATL's CFO S Sudheer, Company Secretary Shobha Sudhakar Acharya and Compliance Officer Jamili Jalaiah for two years. </p>