The Securities and Exchange Board of India has banned seven companies, which recently raised funds in initial public offers, from further accessing the securities market and has also banned some merchant banks involved in these issues after investigations.
The seven companies include PG Electroplast (PGEL.NS), Brooks Laboratories (BROO.NS), RDB Rasayans (RDBA.NS), Taksheel Solutions (TAKS.NS), Tijaria Polypipes (TIJA.NS), Onelife Capital Advisors and Bharatiya Global Infomedia (BHRT.NS), the regulator said.
SEBI has also prohibited directors of these firms from buying, selling or dealing in the securities market till further notice.
These firms have also been ordered to call back some funds from the IPO proceeds and deposit in a commercial bank till further notice.
The orders come after investigation into the public issues of these firms that revealed misuse or diversion of IPO proceeds, inadequate documentation and due diligence and possible violation in trading in shares of these companies on the day of listing.
The regulator has barred some merchant bankers involved in these issues including Almondz Global and PNB Investments, the investment banking arm of state-run Punjab National Bank (PNBK.NS), from taking any new assignments.
D&A Financial, Artherstone Capital, Chartered Capital and Onelife Capital Advisors (ONEL.NS) have also been barred, SEBI said.