Anand Rathi wealth management arm drops IPO as group firm faces NSEL probe

Sources say that Sebi has directed the company to withdraw prospectus or face rejection

Anand Rathi Wealth Services, the wealth management arm of financial services group Anand Rathi, has dropped its plan to go public. The firm has "withdrawn" its offer document filed with market regulator Securities and Exchange Board of India (Sebi).  

While the company has cited difficult market conditions as the reason for the withdrawal, sources say Sebi was not keen on giving a green signal to the IPO due to a pending investigation in the National Spot Exchange (NSEL) matter.  

Group firm Anand Rathi Commodities is among the aggrieved brokerages in the Rs 56-billion NSEL default.

"Sebi asked Anand