Market regulator Sebi today disposed of charges against KPT Infotech in a case related to probe into initial public offering of Onelife Capital Advisors.
Sebi's investigating authority (IA) had summoned KPT Infotech in order to conduct a thorough probe in the IPO of Onelife Capital Advisors and to ascertain the role played by KPT Infotech into the allegations of diversion of IPO funds.
However, it was observed that KPT Infotech failed to comply with the summons issued by the IA.
In a ruling today, the Securities and Exchange Board of India (Sebi) said the charges against KPT Infotech "does not stand established and the matter is, accordingly, disposed of".
The market watchdog observed that "there is no clear and cogent material on record to show that the summons have been delivered to the noticee (KPT Infotech)".
"Hence, the noticee cannot be conclusively said to be in non-compliance with the summons issued by Sebi," it added.
Sebi had initiated probe into the IPO of Onelife Capital Advisors after it noticed suspicious transfers of the proceeds to certain entities including KPT Infotech .
It was observed by Sebi that One Life Advisors which had raised Rs 36.85 crore from the IPO, had made mis-statements in its prospectus, failed to disclose material developments after filing the prospectus by way of an advertisement and had also used the IPO proceeds for the purposes other than the objects stated in prospectus.
In this regard, summons dated March 30, 2012 were issued to KPT Infotech asking it to appear before the IA on April 9, 2012 along with the certain documents.
Later, the IA had issued another summon dated April 12, 2012 asking the entity to appear before the regulator on April 19, the same year.
