[ By Bobby Anthony ]The Securities & Exchange Board of India (SEBI) has banned Midvalley Entertainment Ltd and its independent directors from the capital market for seven years for diverting IPO proceeds worth more than Rs 50 crore and not making requisite disclosures in its prospectus.Four other officials of the company including its compliance officer as well as manager of accounts and...
The Securities & Exchange Board of India (SEBI) has banned Midvalley Entertainment Ltd and its independent directors from the capital market for seven years for diverting IPO proceeds worth more than Rs 50 crore and not making requisite disclosures in its prospectus.
Four other officials of the company including its compliance officer as well as manager of accounts and finance have also been barred from the capital market.
It may be recalled that the SEBI had conducted an investigation between January 2011 and February 2011 to ascertain any irregularities with respect to the initial public offer (IPO) made by the company.
The investigation revealed that out of Rs 60 crore of IPO proceeds, the company had utilized only Rs 3 crore towards objects of the issue and diverted more than Rs 50 crore to its related entities.
The company also failed to make disclosures in its prospectus regarding the directorship of one of its independent directors, in two other entities.