Vaswani Industries IPO under Sebi probe

The company, its promoters, directors and intermediaries have been asked by Securities and Exchange Board of India (Sebi) to cooperate in the investigations.

SEBI, on May 13, had withheld the listing of the company’s IPO following complaints by about 100 investors alleging large scale withdrawal and rejections in the issue.

“A detailed investigations shall be initiated into the matter...The investigation shall be expeditiously completed within a period of 30 days, so that a decision on the listing application by the stock exchanges can be taken within the statuary time limit provided under the Companies Act,” Sebi said in an order.

The regulator also directed the merchant bankers concerned to deposit the amount collected from the issue in an interest generating account.

A sum of Rs 49 crore being the issue proceeds has been kept in public issue account opened for the purpose which is accessible by the issuer only after the listing permission is granted by the stock exchanges.

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