SEBI bans 7 firms from fund raising; PG Electroplast, One Life slips over 10%

Shares of 7 recently listed companies came under pressure on reports the Securities and Exchange Board of India ( SEBI ) has sought to punish promoters of these companies, accusing them of misusing IPO proceeds, performing shoddy due-diligence process, and aiding promoters to prop up prices on listing day.The seven companies include PG Electroplast, Brooks Laboratories, RDB Rasayans, Taksheel Solutions, Tijaria Polypipes, Onelife Capital Advisors and Bharatiya Global Infomedia, the regulator said.The regulator has sought to punish three merchant banks also, including Punjab National Bank's merchant banking arm, Almondz Global Securities and Atherstone Capital.Shares of PG Electroplast Limited closed 17% lower at Rs 157.80, Brooks Laboratories Limited slipped 9.8% lower at Rs 13.30, RDB Rasayans was trading 4.9% lower at Rs 8.84, Taksheel Solutions Limited dropped 4.7% to Rs 14.10, Tijaria Polypipes down 4.9% to Rs 9.64, Onelife Capital slipped 7.7% lower at Rs 224.25 and Bharatiya Global dropped 9.8% to Rs 8.47.Experts feel as most stocks are not locked up in a circuit, investors are advised to avail this opportunity to liquidate their holding in the respective companies. It has directed these entities to bring back the funds diverted through various routes," as quoted by an ET report.Securities and Exchage Board of India is currently reviewing the entire process for initial public offering of shares, UK Sinha said in an interview with ET Now."We are currently reviewing the entire IPO process, including shortening the timeline for the entire process," says SEBI chairman U.K. Sinha. The regulator is also working to deal with the issue of the volatility on the listing day.The chairman added, "We came across instances wherein material information had been suppressed and we also found that there are cases where money was circulated in a manner which was not in line with the disclosures made by the company.