Six merchant banks fined for disclosure lapses in CARE IPO

In a major clampdown for ‘suppression of material facts’ in IPO documents, the Securities and Exchange Board of India on Friday penalised merchant banking arms of SBI, ICICI, Kotak Mahindra, IDBI, DSP Merrill Lynch and Edelweiss groups for lapses during the public offer of rating agency CARE two years ago. The six merchant banks have been asked to pay a fine of Rs.10000000 — the maximum penalty applicable for violation of disclosure related norms in IPO documents — within 45 days. — PTI