Market regulator Sebi today disposed of a case against merchant banker Chartered Capital and Investment Ltd (CCIL) for allegedly involving in irregularities related to RDB Rasayan's IPO in 2011.
The Securities and Exchange Board of India (Sebi), through an interim order in December 2011, had barred CCIL from taking up any fresh assignment related to public offers, in any manner whatsoever. The directions were confirmed in September 2012.
The confirmatory order was challenged by CCIL in Securities Appellate Tribunal (SAT), wherein, via an order in October 2012, set aside the order passed by Sebi and directed the regulator to complete the investigation and take appropriate decision by December 31, 2012.
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In an order passed today, Sebi said, "...Noticee has already undergone such restraint/prohibition imposed by the interim order for a period of more than nine months."
Accordingly, Sebi has "disposed of" the case against CCIL without any further direction in the matter.
During its probe, the regulator had found lack of due diligence on the part of merchant banker to ensure that RHP and prospectus contained all the disclosures related to the system.
Sebi's investigations into RDB Rasayans IPO was primarily focused on disclosures made in the offer documents, the bidding pattern, trading on first day of listing and utilisation of IPO proceeds.
