Varyaa Creations Faces Market Ban Over IPO Fund Diversion
Sebi has banned SME company Varyaa Creations Ltd and Inventure Merchant Banking from the market over alleged IPO fund diversion. Over 70% of proceeds were transferred to three entities. Sebi froze the promoters' shares, highlighting similar interventions in the SME sector due to fund misuse.
- Country:
- India
The Securities and Exchange Board of India (Sebi) has taken action against Varyaa Creations Ltd, a company listed on the SME platform of BSE, by halting its access to the securities market. This decision follows allegations of fund diversion from its recent initial public offering (IPO).
In a related move, Sebi has also barred Inventure Merchant Banking Services from accepting any new assignments concerning merchant banking activities until further notice, following an inquiry into discrepancies in the IPO process of Varyaa Creations.
The inquiry revealed substantial fund transfers on the IPO listing day, raising concerns. This marks another instance of Sebi's proactive stance in addressing malpractice in the handling of IPO funds within the SME sector.
(With inputs from agencies.)
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