SAT ask Tijaria to submit replies, Sebi pass order in 3 months

Securities Appellate Tribunal today asked Tijaria Polypipes and its director to file their replies to Sebi show cause notices within two weeks and has further directed the market regulator to take appropriate action in the case within three months of receiving the replies.
The matter relates to alleged irregularities in Tijaria Polypipes' Initial Public Offering (IPO).
Preliminary probe by the market regulator had found that Tijaria Polypipes had diverted substantial part of the IPO proceeds 'through layered transactions' to certain entities who had allegedly provided an exit to the retail allottees/ Qualified Institutional Buyers (QIBs).
Accordingly, Securities and Exchange Board of India (Sebi) had prohibited Tijaria Polypipes and its director Alok Jain Tijaria, among other entities, from trading in the capital market, till further directions. Subsequently the company had filed an appeal with the tribunal against Sebi's order.

Noting that the Sebi order has been in operation till date and show cause notices has already been issued to the company and Jain, SAT today said that "instead of going into merits of the case it would be just and proper to dispose of the appeal by directing the respondent to dispose of the above show cause notice in a time bound manner".
"We direct the appellants (Tijaria Polypipes and Alok Jain) to file reply to the show cause notice within a period of two weeks from today if not already filed and further direct the respondent to dispose of the show cause notice dated June 13, 2013 within a period of three months from the date of receiving reply to the show cause notice," SAT said.

The IPO of Tijaria Polypipes was open between September 27 and 29, 2011.
The probe had also observed that the firm had failed to disclose the fact that it availed of inter-corporate deposits (ICD) for meeting working capital requirements and its decision to repay such ICDs from the IPO proceeds in its offer document.