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Business Standard
15-05-2025
- Business
- Business Standard
Sebi bans Varyaa Creations from securities mkt 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. 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. 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. 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prima facie, appears that Rs 9 crore from the IPO proceeds was credited to the bank account of Kaveri Corporation and withdrawn in cash on April 30, 2024 -- the very day the company was listed," Sebi said.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.
Economic Times
15-05-2025
- Business
- Economic Times
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. ADVERTISEMENT Also, the shareholdings of seven promoter group entities have been frozen until further directions, according to an interim order passed by Sebi on Wednesday. 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. 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. The stated purpose of the transfers was to cover issue management fees, underwriting and selling commissions, registrar fees, and other IPO-related expenses. ADVERTISEMENT 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. ADVERTISEMENT 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. ADVERTISEMENT "...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". ADVERTISEMENT 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.
Time of India
15-05-2025
- Business
- Time of India
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.
Yahoo
07-05-2025
- Politics
- Yahoo
Duckworth announces legislation protecting VA jobs
Sen. Tammy Duckworth (D-Ill.) said Wednesday she is introducing two bills aimed at protecting jobs at the Department of Veterans Affairs (VA), amid broad efforts by the Trump administration to reduce the agency's workforce. The first piece of legislation is the Protecting Veterans in Crisis Act, which would require VA Secretary Doug Collins to report to Congress before making any cuts to the Veterans Crisis Line (VCL). The bill comes after numerous VCL workers were terminated in error earlier this year, but many were rehired following significant backlash to the move. 'VA Secretary Collins may promise to rehire VCL workers he wrongfully fired, but here's the bottom line: He should be transparent with Congress,' Duckworth, a combat veteran, wrote in a post on social platform X, announcing the legislation. The post follows testimony earlier Wednesday, when she pressed Collins on the 'lack of transparency' surrounding the firings at the mental health crisis hotline for veterans. 'The firing of these mission-critical employees was shrouded in a lack of transparency that cannot be tolerated,' Duckworth said in a statement after the hearing. 'If Secretary Collins wants to make cuts to the Veterans Crisis Line, he should report them to Congress so we can ensure these cuts won't weaken the VCL's mission. The lives of our Veterans in crisis depend on this lifeline—and I'll keep pushing to defend it,' she continued. Duckworth also announced Wednesday she is reintroducing the VA Employee Fairness Act, which would restore collective bargaining rights to VA health care workers, 'so they can speak out freely against any problems they're facing at the VA.' 'This Admin cannot continue to slash and burn the VA in the dark,' Duckworth wrote in a post on X. The move comes as the VA confirmed plans to cut tens of thousands of employees in the coming months amid an effort to restructure the agency and drastically reduce the size of the workforce. Duckworth last month introduced the Protect Veteran Jobs Act to reinstate thousands of veterans who were fired amid Trump administration cuts at the VA. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to The Hill.
The Hill
07-05-2025
- Health
- The Hill
Duckworth announces legislation protecting VA jobs
Sen. Tammy Duckworth (D-Ill.) on Wednesday said she is introducing two bills aimed at protecting jobs at the Department of Veterans Affairs, amid broad efforts by the Trump administration to reduce the agency's workforce. The first piece of legislation is 'The Protecting Veterans in Crisis Act,' which would require VA Secretary Doug Collins to report to Congress before making any cuts to the Veterans Crisis Line (VCL). The bill comes after numerous VCL workers were terminated in error earlier this year, but many were rehired following significant backlash to the move. 'VA Secretary Collins may promise to rehire VCL workers he wrongfully fired, but here's the bottom line: He should be transparent with Congress,' Duckworth, a combat veteran, wrote in a post on X, announcing the legislation. The post follows testimony earlier Wednesday, when she pressed Collins on the 'lack of transparency' surrounding the firings at the mental health crisis hotline for veterans. 'The firing of these mission-critical employees was shrouded in a lack of transparency that cannot be tolerated,' Duckworth said in a statement after the hearing. 'If Secretary Collins wants to make cuts to the Veterans Crisis Line, he should report them to Congress so we can ensure these cuts won't weaken the VCL's mission. The lives of our Veterans in crisis depend on this lifeline—and I'll keep pushing to defend it,' she continued. Duckworth also announced Wednesday she is reintroducing the 'VA Employee Fairness Act,' which would restore collective bargaining rights to VA health care workers, 'so they can speak out freely against any problems they're facing at the VA.' 'This Admin cannot continue to slash and burn the VA in the dark,' Duckworth wrote in a post on X. The move comes as the VA confirmed plans to cut tens of thousands of employees in the coming months amid an effort to restructure the agency and drastically reduce the size of the workforce. Duckworth last month introduced legislation, 'Protect Veteran Jobs Act,' to reinstate thousands of veterans who were fired amid Trump administration cuts at the VA.
