Regulator Sebi on Thursday restrained Five Core Electronics Ltd and its promoters from the securities market till further orders for alleged violation of market norms and misutilisation of the IPO proceeds
Regulator Sebi on Thursday restrained Five Core Electronics Ltd and its promoters from the securities market till further orders for alleged violation of market norms and misutilisation of the IPO proceeds.
Sebi in an interim order also asked the National Stock Exchange (NSE) to appoint an independent auditor or audit firm within 30 days for conducting a detailed forensic audit of the company's books of accounts to confirm misutilisation of the IPO proceeds.
Till further orders, the entities have also been restrained from being associated with any Sebi-registered intermediary or any listed entity. They have also been asked not to dispose of, sell or alienate their assets or divert funds.
Sebi noted that it appears that the company and its promoters have misutilised the funds amounting to ₹46.66 crore raised through the initial public offering (IPO). Further, "prima facie", there was an intent to defraud the investors, it said.
The firm had failed to comply with provisions of the Listing Obligations and Disclosure Requirements (LODR) regulations, the Securities and Exchange Board of India (Sebi) said.
Therefore, the markets regulator has barred the entities from the securities market till further orders and also asked them to extend necessary cooperation to the auditor, and the auditor is required to submit its report to the regulator through the NSE within 3 months from the date of its appointment.
The promoters are Amarjit Singh Kalra, Surinder Kaur Kalra, Jagjit Kaur Kalra, Amarjit Singh Kalra HUF, Surinder Singh Kalra and Surinder Singh Kalra HUF.
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