SEBI IPO Crackdown continues with Taksheel Solutions IPO - Indian IPO Blog

Wednesday, January 18, 2012

SEBI IPO Crackdown continues with Taksheel Solutions IPO

SEBI has been on a roll with crackdowns on IPOs. Now, as part of a crackdown by the Securities & Exchange Board of India (SEBI) on manipulation of public offerings, Taksheel Solutions Limited (TSL), its directors, key executives and its merchant banker, PNB Investment Services (PNB) are among those barred from accessing the capital markets

Investigations into the matter revealed that Taksheel Solutions had deliberately concealed material facts from the public issue. It had also misled investors to thinking that the company has pan-global presence. Besides the company misused the IPO proceeds toward paying off Inter-Corporate Deposits to the tune of Rs.32 crore, a fact which was not disclosed to the general public

The company had supposedly earmarked roughly Rs24 crore towards ‘general corporate purposes’ to be used for ‘strategic initiatives’ and such, but instead used this as a guise to pay off concealed instruments, namely the ICDs

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