INSUBCONTINENT EXCLUSIVE:
Regulator Sebi today barred Inventure Growth and Securities as well as its directors and other senior officials from the capital markets for
four years for concealing "material information" and making false and inadequate disclosures in the IPO documents.
The regulator, which
conducted a probe into the affairs of Inventure Growth and Securities Ltd (IGSL) in relation to its initial public offer (IPO), found that
the firm had misutilised the proceeds received from the initial share-sake by applying them towards activities not disclosed in the
prospectus.
Besides, IGSL, which came out with its IPO in July 2011, made false statements in its prospectus with respect to raising bridge
loans and other financial arrangements, the Securities and Exchange Board of India (Sebi) said in an order.
Further, the regulator said that
the company's managing director, nine directors, chief financial officer and compliance officer gave a wrong certificate in the prospectus
and were also responsible for concealing material information, and making false and inadequate disclosures in the IPO documents.
Those
facing the heat are the firm's managing director Nagji K Rita; directors -- Virendra D Singh, Kanji B Rita, Vinod K Shah, Pravin N Gala,
Arun N Joshi, Srinivasaiyer Jambunathan, Harshavardhan M Gajbhiye, Ajay Khera and Deepak M Vaishnav -- CFO Arvind Gala and company secretary
and compliance officer Bhavi Gandhi.
By indulging in such activities, the company and its officials violated issue of capital and disclosure
requirements (ICDR) regulations.
Accordingly, Sebi has barred the company, its directors, CFO, company secretary and compliance officer from
the securities market for four years.
