SBI Cards IPO might be delayed over investigation into related company: Report

live bse live nse live Volume Todays L/H More × The listing of SBI Cards is being held up over an investigation into the parent company's mutual funds arm, according to a Business Standard report. The Securities and Exchange Board of India (SEBI) is investigating SBI Mutual Fund over allegations of trading shares of Manappuram Finance using price-sensitive information. Both SBI Cards and SBI Mutual Fund are subsidiaries of State Bank of India (SBI). Moneycontrol could not independently verify the story. SBI Cards, SBI MF and SEBI have not yet responded to requests for comment by Business Standard. “One of our group companies, SBI Funds Management, is involved in proceedings initiated against it by SEBI...” SBI Cards’ draft offer document stated, as seen by the publication. SEBI has issued show cause notices, to which SBI Funds has responded, but the market regulator has not yet passed an order, the draft offer said. SEBI, on February 5 modified the norms for initial public offerings (IPOs), which makes it unclear if there will be a delay on SBI Cards’ debut on stock exchanges. According to the older norms framed in 2006, observations in draft order documents have to be kept in abeyance for 90 days from the date of the show cause notice, or from the filing of the draft offer, whichever is later. The newer guidelines do away with the abeyance period in cases where the show cause notice was given to the entity in a adjudication proceeding. SBI and Carlyle Group, which together own 76% of SBI Cards, will be divesting some of their stake in the company.