Sebi confirms ban on two firms, directors in Taksheel IPO case

Market regulator Sebi today rejected pleas of revocation of its orders against two Kolkata-based firms, including Rosevalley Merchandise, and their directors who have been barred from the markets in a case related to irregularities in Taksheel Solutions IPO. In a confirmatory order, Securities and Exchange Board of India (Sebi) has said that it did not "find it fit to modify / revoke the ad interim directions issued vide order dated December 28, 2011 with respect to Rosevalley Merchandise, its directors and Overall Financial Consultants, its directors".As per Sebi's probe, both the firms share same address in Kolkata and were suspected of indulging in fraudulent, manipulative and abusive market activities in their dealings of shares of Taksheel Solutions.Last month, Sebi had also imposed a penalty on another Kolkata-based group Rose Valley Real Estate and Constructions for issuing certain bonds without necessary approvals. While a further probe is currently underway against this company, it could not be ascertained whether Rosevalley Merchandise is linked to the same Rose Valley Group In its today's order against Rosevalley Merchandise, Sebi said that it "...hereby confirm the directions issued vide the ad-interim ex-parte order dated December 28, 2011 in the IPO matter of Taksheel Solutions against Rosevalley Merchandise its directors namely Anil Sharma and Biraj Sonakar and Overall Financial Consultants its directors namely Anup Kumar Sharma and Manoj Kumar Pandit ."Sebi said its orders would be reviewed up on conclusion of all the proceedings in the matter.After noticing wide fluctuations in the price of scrip of Taksheel, Sebi had initiated a preliminary probe.Taksheel had came out with an Initial Public Offering (IPO) of 5500000 shares which opened on September 29, 2011 and closed on October 04, 2011.The preliminary probe revealed that Taksheel made various mis-statements in the offer document and failed to disclose vital pieces of information, according to Sebi.It was also revealed that there were inaccurate and untrue statements in the electronic media when the issue was open for subscription, it added.Further, it was observed that certain entities including Rosevalley Merchandise and Overall Financial Consultants had traded in the scrip of Taksheel on the first day of trading and incurred substantial losses."Such huge losses were prima facie found to be offset through layered transactions from Taksheel," Sebi said.Based on its probe, Sebi had imposed the ban on the entities till further directions.Sebi today said that the probe in the matter has been completed and it is in process of contemplating appropriate proceedings against the entities that are found guilty.