MUMBAI: Sebi has barred three entities– Fincare Financial and Consultancy Services, Precise Consulting & Engineering and KPT Infotech — from the securities markets for up to five years for alleged irregularities in the IPO of Onelife Capital Advisors.
The regulator in three separate orders, restrained Fincare Financial and Consultancy Services and Precise Consulting & Engineering from the securities market for five years from the date of the interim order passed on December 28, 2011.
While KPT Infotech has been prohibited from accessing the securities market for a period of five years from today. The orders would come into force with immediate effect. According to Sebi, these firms facilitated Onelife Capital Advisors in siphoning off or diversion of IPO proceeds and thereby violated provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
During the preliminary probe, Sebi found that Onelife Capital Advisors had made mis-statements in its Red Herring Prospectus, failed to disclose material developments and had diverted the IPO proceeds for purposes other than the objects stated in the documents.
It was found that Onelife Capital Advisors was aided and abetted by these entities in the diversion of IPO proceeds.
In a separate order, Sebi suspended the registration of Khandwala Securities for a period of one month for alleged fraudulent trading and violating brokers’ norm.
According to Sebi, Khandwala Securities was indulged in synchronised trades that are non-genuine transactions.
The regulator found that Khandwala Securities was connected with Shree Rama Multi Tech Ltd (SRMTL) and had given Rs 1 crore to it, which the broker returned after more than a month. Besides, clients of Khandwala Securities with its involvement had repeatedly executed cross deal in the scrip of SRMTL.
“While trading in the scrip, Khandwala Finance had exposed itself to considerable risk by allowing its certain clients to take huge exposure without having sufficient credit balance in their account” Sebi noted.
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