Sebi bans Synoptics Tech, promoters from securities market for IPO fund diversion
Live Events
New Delhi, Markets regulator Sebi on Tuesday restrained Synoptics Technologies Ltd (STL) and its promoters from securities market following allegations of siphoning off IPO proceeds. Apart from Synoptics, the company's promoters Jatin Shah, Jagmohan Manilal Shah and Janvi Jatin Shah were also barred by the regulator.In an interim order, the regulator, said "the examination reveal a well laid out plan of the company (Synoptics Technologies) and the lead manager, FOCL (First Overseas Capital Ltd), to siphon away funds raised in the IPO"."Acting under the authority granted by an escrow agreement, FOCL prima facie appears to have issued instructions to the banker to the issue for transfer of funds under the guise of meeting issue-related expenses."The amount transferred ostensibly for meeting 'Issue management fees, underwriting and selling commissions, registrar fees, and other IPO related expenses' was Rs 19 crore and grossly disproportionate to the Rs 80 lakh disclosed as issue expenses in the RHP (Red Herring Prospectus)," Sebi's whole time member Ashwani Bhatia said in the order.As per the order, the amount accounted for more than 54 per cent of the total proceeds raised by Synoptics through the fresh issue of shares worth Rs 35.08 crore and 35 per cent of the total issue size (Rs 54.04 crore).The markets watchdog concluded that FOCL, acting in concert with the Synoptics Technologies, siphoned off a substantial portion of the issue proceeds.Accordingly, Sebi directed FOCL not to take up any new assignments relating to merchant banking activities in the securities market till further directions from the regulator.Additionally, in respect of any pending assignments where FOCL is already engaged as a lead manager as on date, the issuer will appoint a monitoring agency to monitor the use of proceeds irrespective of the issue size, the order said.Sebi observed that FOCL, during the period May 1, 2022 to April 30, 2025, undertaken Initial Public Offering (IPO) assignments for 20 companies which listed on SME segment of BSE and NSE.The regulator said it will "examine the utilisation of funds raised in all these issues to identify whether a similar modus operandi was adopted in any of the other issues managed by FOCL during this period".Mumbai-based Synoptics Technologies raised Rs 54.04 crore through an Initial Public Offer (IPO) on the SME Platform of NSE in July 2023, and FOCL acted as the lead manager to the issue.The order came after the Securities and Exchange Board of India (Sebi) examined the matter on receiving complaints alleging irregularities in the bidding process following the closure of the IPO.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
United News of India
37 minutes ago
- United News of India
Stadium stampede: Ktk Opposition Leader demands Special Assembly Session, Rs 1 Cr Compensation
Bengaluru, June 8 (UNI) Karnataka Opposition Leader R Ashok on Sunday demanded a special session of the Assembly to deliberate on the Chinnaswamy stadium stampede. Addressing a press conference here, Ashok said the House should also discuss the Congress-led government's failures that cost 11 lives ahead of IPL champions Royal Challengers Bengaluru (RCB) victory celebrations on Wednesday. 'Three separate inquiries have been ordered – which one is genuine? We demand a judicial probe headed by a sitting High Court judge,' he insisted. Ashok also called for enhanced compensation for the victims' families. 'If the government is truly not at fault, it should give Rs 1 crore per family. As opposition leaders, we will contribute our one month's salary to the families,' he announced. Dismissing the justification for such a grand event, Ashok added, 'Winning a trophy is not new. Other states have won before. But no other CM has ever used such events for cheap publicity.' He accused the state government of flouting police instructions and thereby breaking the law, which led to the stampede. Ashok alleged that the tragedy could have been averted had Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar not been engrossed in a power tussle. 'Instead of mourning the loss of innocent students, they were chasing a trophy. The police had informed the government of a casualty by noon, and yet the programme went on even after eight children had died. This shows how stone-hearted the government is,' he charged. Ashok cited a letter dated June 4, from the Vidhana Soudha police to the Chief Secretary, warning that the programme was being hastily organised, with inadequate staff and serious security concerns. The letter had recommended cancelling the event, yet the government proceeded, he alleged. He further stated that police had clearly instructed against the participation of department staff and their families, but the directive was ignored. 'CCTV deployment was skipped, drones were flown despite prohibition, and the stage – which was to accommodate only 20–30 people – ended up hosting over 200, including 11 players,' he said. Ashok pointed out that while the event was officially listed as a government function, CM Siddaramaiah later disowned it, claiming it was not a government-organised event. 'This doublespeak is unacceptable,' he said. UNI BDN SSP
News18
43 minutes ago
- News18
NIA To Probe Murder Case Of Mangaluru Hindu Activist Suhas Shetty
Last Updated: The NIA will now probe Shetty's murder case after it received an order from the Ministry of Home Affairs (MHA). Suhas Shetty Murder: The National Investigation Agency (NIA) will probe the case of Hindu activist Suhas Shetty in Karnataka's Mangaluru, who was hacked to death by a group of assailants on May 1. The NIA will now probe Shetty's murder case after it received an order from the Ministry of Home Affairs (MHA). The probe agency will take police remand of all the eight arrested accused and question them in detail about the case. The development came after the BJP petitioned Governor Thaawarchand Gehlot seeking direction to the State government to transfer the case to NIA for probe last month. Accusing the Congress government of adopting a soft stance over such cases, the BJP had said only an NIA probe could provide justice. Earlier, Sulochana Shetty, mother of slain activist had also urged the state government to transfer the investigation of her son's murder case to the the probe agency. Sulochana had expressed concern about the state government's handling of her son's murder investigation, and had claimed that authorities were impeding a thorough inquiry into the case. 'We seek justice for Suhas. A group of over 50 individuals subjected my son to torture before taking his life. Both home minister G Parameshwara and district minister Dinesh Gundu Rao wrongly labelled my son Suhas as a rowdy.I clarify that Suhas was not a rowdy, but worked with Bajrang Dal. Only an NIA investigation can ensure we receive proper justice," she had said. Suhas Shetty Murder Suhas Shetty, a known rowdy sheeter and Hindutva activist, was murdered by an unidentified group on May 1 within the Bajpe police station limits in Mangaluru. He was attacked at around 8:30 pm while he was traveling with five of his associates when their vehicle was intercepted near Kinnipadavu Cross by the attackers. The attackers, around six people, were traveling in a Swift car and a pickup truck. They reportedly attacked Shetty and his group, assaulting him with deadly weapons causing serious injuries. Shetty was the main accused in the high-profile 2022 murder of Mohammed Fazil. Mohammed Fazil was killed by four masked men on July 28, 2022, with Shetty being the prime accused in the case. The then Basvraj Bommai-led BJP government had not granted any compensation to the deceased family. However, the Siddaramaiah-led Congress government had granted a compensation of Rs 25 lakh to Fazil's family in 2023, something that was also offered to three other families that saw members lose lives to communal murders. First Published: June 08, 2025, 17:07 IST
NDTV
43 minutes ago
- NDTV
Judge's Mangalsutra Snatched From UP Temple, 10 Women Thieves Arrested
Mathura: A gang of women thieves who targeted female devotees at temples in Mathura was busted in a police crackdown after a judge's mangalsutra was snatched, officials said on Sunday. Ten such women thieves were arrested, they said. Senior Superintendent of Police (SSP) Shlok Kumar said on June 1, Prema Sahu, an Additional District and Sessions Judge posted in Ujjain, Madhya Pradesh, was visiting Thakur Shri Radharaman Temple in Vrindavan with family members when her gold mangalsutra was snatched. "We launched a campaign to identify and apprehend women thieves and pickpockets active in the temples, leading to the arrest of 10 such female thieves on Saturday," the SSP said. Police recovered several stolen purses belonging to both men and women, containing cash, Aadhaar cards, PAN cards, debit cards, driving licenses, and other important documents, along with a total of Rs 18,652 in cash. SSP Kumar revealed that during interrogation, it was discovered that the women travelled from Madhya Pradesh and Rajasthan to be part of the gang. They indulged in pickpocketing, phone theft, and snatching valuable ornaments in crowded temples of Vrindavan and Mathura. Legal proceedings have been initiated, and all arrested women have been sent to jail, the SSP added.
