Sebi Clamps Down on Synoptics Technologies Amid IPO Fund Siphoning Scandal
Sebi has banned Synoptics Technologies and its promoters from the securities market due to allegations of diverting IPO proceeds. An investigation reveals a plan by Synoptics and its lead manager to misuse funds, with over 54% of the proceeds allegedly siphoned off.
- Country:
- India
Sebi has taken decisive action against Synoptics Technologies Ltd, barring the company and its promoters from accessing the securities market. This comes in the wake of serious allegations that the company siphoned off funds raised during its Initial Public Offering (IPO).
The investigation reportedly revealed a strategic plan orchestrated by Synoptics and its lead manager, First Overseas Capital Ltd (FOCL), to redirect IPO funds. Under the guise of issue-related expenses, a disproportionate Rs 19 crore was transferred, starkly contrasting the Rs 80 lakh officially declared.
The watchdog's order, which also restricts FOCL from accepting new merchant banking projects, highlights the scrutiny Sebi will apply to FOCL's past dealings. The move underscores Sebi's commitment to ensuring transparency and accountability in the financial markets.
(With inputs from agencies.)
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