SEBI Bans Acropetal Technologies Officials
Acropetal Technologies Ltd offers IT outsourcing services to clients in engineering design services, healthcare, and energy & environment sectors. In Feb 2011, it had launched an initial public offering worth Rs 170 crore. On Friday, the market regulator Sebi has barred Acropetal Technologies MD Mr. D Ravi Kumar for 10 years. Sebi bans Acropetal Technologies MD from the capital market for diverting the funds raised through its IPO.
On the other hand, it also banned six senior officials of the company for 2 to 5 years. Moreover, other entities related to the company received barred notice from the regulator for 7 years.
As of the reports, Sebi is at its initiative analysis in the matter of Acropetal Tech IPO to determine whether there were any violations of the securities market.
In Feb 2011, the company was raised over Rs 170 crore through an IPO at a price band of Rs 88 to Rs 90 per equity share.
According to the reports, the officials of Acro Tech Ltd have not utilized the funds towards the objects as declared in its draft prospectus. It was done by Acropetal Tech Ltd with the help of various main entities. Although, some of the entities were related to the company. The company had transferred the funds to its related entities for the trading.
“It is determined that ATL is responsible for the diversion of IPO proceeds which has led to the violation of PFUTP Regulations. It has notably varied from the objects of the issue. Moreover, it has not managed the net proceeds as regards the objects as said in its draft prospectus, said Sebi.”
It also added that the entities of ATL failed to make true and satisfactory disclosures in the prospectus. Moreover, it misleads investors. As of result, Sebi has barred ATL MD Mr. D Ravi Kumar from the capital market for 10 years. It also banned him from the operations of buying, selling or any dealing in securities as directly or indirectly in the market. Whatsoever, It has banned him from all types of activities related to the capital market for 10 years.
Other Officials Names
Sebi has also halted various executives from ATL for 2 to 5 years. ATL’s CFO Sudheer, Secretary Shobha Sudhakar Acharya, Compliance Officer Jamili Jalaiah also got suspended notice from the Sebi. Other non-executive and independent directors banned for five years. Ramdas Janardhana Kamath, Subrahmanya Dandala Kannayya Reddy, and Mohan Hosahally Ramakrishna are the non-executive and independent directors of ATL who received the prohibited notice from the Sebi.