Sebi bans SME firm Varyaa Creations from securities market over IPO proceeds diversion
Markets
regulator Sebi has restrained SME company
Varyaa Creations Ltd
(VCL) from accessing the securities market for alleged diversion of funds raised through its initial public offering (
IPO
). Additionally, the regulator has barred Inventure Merchant Banking Services Pvt Ltd from taking up any new assignment relating to merchant banking activities in the securities market till further directions.
Also, the shareholdings of seven promoter group entities have been frozen until further directions, according to an interim order passed by Sebi on Wednesday.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Discover how to go from draft to done in a few clicks—not a few hours.
Grammarly
Install Now
Undo
Varyaa Creations, which is primarily engaged in wholesale trading of precious metals, and manufacture and sale of jewellery, came out with its Rs 20.10-crore IPO and got listed on the SME platform of the BSE on April 30, 2024.
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
The Securities and Exchange Board of India (Sebi) carried out a routine inspection of the activities of the Inventure and noticed certain irregularities in the IPO process of VCL and initiated an inquiry into the matter.
During the inquiry, Sebi noted that more than 70 per cent of the issue proceeds (Rs 14 crore) were transferred to three entities -- Kaveri Corporation, Maruti Corporation, and Overseas Metal and Alloys Pvt Ltd -- on April 30, 2024, the day of the listing on the instructions of the lead manager Inventure.
Live Events
The stated purpose of the transfers was to cover issue management fees, underwriting and selling commissions, registrar fees, and other IPO-related expenses.
Sebi said these transfers, purportedly made to cover issue-related expenses, were disproportionate to the issue-related expenses disclosed in the IPO's
prospectus
.
The regulator sought explanation from VCL and Inventure regarding transfers, however, VCL failed to give a satisfactory response, citing the unavailability of its accounts team and statutory auditor.
The lead manager stated that transactions were in line with objects of the issue stated in the prospectus -- purchase of
inventory
and general corporate purposes.
After further investigation, Sebi, prima facie, found certain discrepancies in the use of the funds.
"...it, prima facie, appears that Rs 9 crore from the IPO proceeds was credited to the
bank
account of Kaveri Corporation and withdrawn in cash on April 30, 2024 -- the very day the company was listed," Sebi said.
Accordingly, Sebi has restrained Varyaa Creations "from accessing the securities market, either directly or indirectly, in any manner whatsoever until further orders. Besides, Noticee 2 (Inventure Merchant Banking Services) shall not take up any new assignment relating to merchant banking activities in the securities market till further directions from Sebi".
Besides, the regulator directed the appointment of a monitoring agency for any pending assignments of Inventure.
On freezing the holding of seven entities, Sebi noted that a lock-in period applicable to a portion of the promoters' shareholding expired on May 14, and there is a risk of the promoters offloading the shares held by them in VCL, while the inquiry into the end-use of IPO proceeds is ongoing.
Over the past year, Sebi intervened in many cases, especially in the SME segment, where IPO proceeds were misutilised or siphoned off.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
22 minutes ago
- Time of India
Rs 10,300 crore wealth left in limbo after Sunjay Kapur's death: Who will inherit the massive fortune?
The unexpected passing of industrialist Sunjay Kapur has shaken both the business and entertainment industries, leaving a leadership vacuum at Sona Comstar, the Rs 31,000 crore auto components giant he headed. The 53-year-old billionaire reportedly died of a heart attack while playing polo in London. Some reports suggest the fatal cardiac arrest may have been triggered by accidentally swallowing a bee during the game. Sunjay Kapur's death also brings renewed focus on the future of his massive personal wealth and the succession strategy for his business empire. The chairman of Sona Comstar was widely credited with expanding the company globally after taking over in 2015, following the death of his father and Sona Group founder Dr. Surinder Kapur. Shares Tumble, Company Issues Statement Following the announcement of his death, shares of Sona Comstar dropped by 7% in early Friday trading, reflecting investor uncertainty. In an effort to stabilise sentiments, the company released a statement saying, 'His vision, values, and dedication to excellence has left a lasting legacy for the company. We assure our customers, business partners, employees, and shareholders that our operations and prospects remain unchanged as we honour his legacy.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025년 가장 멋진 RPG 게임을 지금 정복하세요 레이드 섀도우 레전드 Undo While there is no official word on who will lead Sona Comstar next, reports suggest that the board will continue to manage the company, and his sisters might step into active roles. Wealth Division and Provisions for His Children At the time of his passing, Sunjay Kapur's personal net worth stood at approximately Rs 10,300 crore ($1.2 billion), according to Forbes. His fortune had peaked at Rs 13,000 crore ($1.6 billion) in both 2022 and 2024. As per legal succession norms, the management of his estate passes to his wife Priya Sachdev. Nonetheless, Kapur had already secured financial arrangements for his children with Karisma Kapoor—Samaira (20) and Kiaan (14). Reports confirm that bonds worth Rs 14 crore were set aside for them, and both are expected to receive a monthly income of Rs 10 lakh each. Kapur also had a six-year-old son, Azarias, with Priya Sachdev, and had adopted her daughter from a previous marriage, Safira Chatwal. None of the children are currently involved in Sona Comstar's business operations. A Tumultuous Personal Life Sunjay Kapur's personal life often attracted headlines. His first marriage was to designer Nandita Mahtani in 1996, which ended in 2000. His second, to Bollywood actress Karisma Kapoor in 2003, ended in a highly publicised divorce in 2016. The relationship had turned contentious, with allegations of domestic abuse and legal disputes over child support. During the divorce proceedings, Karisma claimed she faced pressure and mistreatment, including an incident where Sunjay allegedly directed his mother to slap her during pregnancy. These allegations were widely reported and fueled extensive media attention. Despite the acrimonious split, Kapur ensured financial support for their children. As part of the settlement, Karisma received ₹14 crore in bonds for them and a residence in Khar. Family Reactions and Public Tributes Karisma Kapoor has not released a statement since his passing, though several family members and celebrities including Kareena Kapoor Khan, Saif Ali Khan, and Amrita Arora were seen visiting her home to offer support. Sunjay Kapur's death was confirmed publicly by Suhel Seth, who called it 'a terrible loss' in a post on social media. Earlier, Karisma's father Randhir Kapoor had openly criticised Sunjay, calling him a "third-class man" and stating that the Kapoor family 'never married for money.' As the company and family navigate this transition, the future of Sona Comstar and the final execution of Sunjay Kapur's estate plans remain under close public and investor scrutiny.
Time of India
22 minutes ago
- Time of India
Weekly Horoscope (June 16 – June 22): Predictions for Snake Chinese Zodiac
Graceful Snake, this week calls you to express your truth without hiding. Your mind is deep and your thoughts sharp, but sometimes you stay silent to keep peace. Now the stars ask you to speak clearly and gently. When your inner truth comes out with honesty, life flows smoother. You don't need to fear misunderstanding if your heart is clean and your words are kind. Weekly Career Horoscope for Snake Chinese Zodiac At work, you might feel like your ideas are not heard. But silence will not help now. Share your thoughts in a respectful way. Suggest solutions, not complaints. Others will respect your wisdom if you speak with calm and clarity. A small shift in communication will make big changes. Avoid politics, stay focused on your goals. Trust your instinct, but express it wisely. Weekly Love Horoscope for Snake Chinese Zodiac In love, stop hiding your real emotions. Speak to your partner from the heart. If something is bothering you, let them know softly. True love grows when both people are honest. If single, express interest without fear. Silence might miss good chances. Say what you feel but in a kind way. Your heart knows what it wants, let your words support it. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo Weekly Money Horoscope for Snake Chinese Zodiac Money matters may feel confusing if you're not open with your financial plans. Talk clearly with those involved, whether family or partners. Avoid hidden spending or emotional buying. It's time to be honest about your needs and goals. A small discussion about savings or budgeting can bring big peace. Speak to a financial advisor if unsure. Openness will bring better control. Weekly Education Horoscope for Snake Chinese Zodiac In education, don't feel shy or scared. Learning grows faster when doubts are cleared on time. Try explaining what you've learned to someone—it will make your understanding stronger. Join group discussions, speak up in class, and share your thoughts. This week is about bold learning, not silent stress. Speak and grow. Weekly Health Horoscope for Snake Chinese Zodiac Your throat, vocal cords, and lower back may feel sensitive this week. Take care with warm drinks, less shouting, and good posture. Gargle with salt water if any soreness comes. Avoid cold foods. Speak kindly, not loudly. Rest your back with proper sitting and soft cushions. Light yoga or mild stretching will help. Express yourself but also give your body space to recover. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
&w=3840&q=100)
First Post
23 minutes ago
- First Post
Israel attacks world's largest gas field in Iran: What will be the impact?
Iran has been forced to partially shut operations at the South Pars gas field after a fire caused by an Israeli air strike. The South Pars gas field is the biggest in the world. But what do we know about it? What happened? What will be the impact? read more This frame grab taken from Islamic Republic of Iran Broadcasting (IRIB) shows a refinery in Iran's South Pars gas field after it was struck by an Israeli drone in Kangan. AP Israel has hit the largest gas field in the world. Iran has been forced to partially shut operations at the South Pars gas field after a fire caused by an Israeli air strike. The South Pars gas field is the biggest in the world. But what do we know about the field? What happened? What will be the impact? Let's take a closer look What happened? First, let's take a brief look at the South Pars gas field. The South Pars gas field is in Iran's southern province of Bushehr. STORY CONTINUES BELOW THIS AD Located in the middle of the Gulf, it is jointly owned by Iran and Qatar (which calls it the North Dome). It spans 9700 square kilometres of which 3,700 square kilometers belongs to Iran. It comprises an oil field and a processing plant. It is thought to hold over 51 trillion cubic meters of natural gas. It holds around 48 per cent of Iran's natural gas reserves. It is responsible for most of Iran's natural gas production – which stands behind only the United States and Russia. A fire resulted as a result of the strike, according to Iranian authorities. People look at fire burning at South Pars gas field, in Tonbak, Bushehr Province, Iran, in this screen grab from a handout video released on June 14, 2025. Reuters The blaze, which occurred in one of the four units of Phase 14 of South Pars, has now been tamped down. It stopped production of 12 million cubic metres of gas. However, the National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate. Iran produces around 275 billion cubic meters (bcm) of gas per year – around 6.5 per cent of global gas output – all of which is consumed domestically due to export restrictions. STORY CONTINUES BELOW THIS AD What will be the impact? This was Israel's first direct attack on Iran's oil and gas infrastructure. It marks a significant escalation in the conflict between the two nations. Analysts are worried about the possible fallout. 'This is probably the most important attack on oil and gas infrastructure since Abqaiq,' Jorge Leon, an analyst at Rystad Energy, talking about the 2019 attack on Saudi Arabian oil fields, told Bloomberg. 'This is a warning shot that Israel is willing to hit Iranian energy infrastructure if Israeli civilians are targeted, ' Richard Bronze, head of geopolitics at Energy Aspects, told The New York Times. Oil prices had already surged 14 per cent on Friday after Israel attacked Iran. The price of oil eventually settled seven per cent higher – at $73 (Rs 6,200 per barrel). This fresh attack could push oil prices even higher from tomorrow (June 16). Experts also fear the conflict in West Asia could disrupt the flow of oil to the rest of the world. Iran, which is part of Organisation of the Petroleum Exporting Countries (OPEC), currently produces around 3.3 million barrels per day (bpd). STORY CONTINUES BELOW THIS AD It exports over 2 million bpd of oil and fuel. 'Israeli action has so far avoided Iranian energy infrastructure, including Kharg Island, the terminal responsible for an estimated 90 per cent of Iran's crude oil exports,' said Ben Hoff, head of commodity research at Societe Generale. 'This raises the possibility that any further escalation could follow an 'energy-for-energy' logic where an attack on one side's oil infrastructure might invite a retaliatory strike on the other's,' Hoff said. With inputs from agencies
