Dr. Datsons Labs IPO Case Updates
On Friday, the market regulator Sebi barred Dr. Datsons Labs IPO Officials for three years. According to the reports, the officials of Dr. Datsons Labs do not utilize the net proceeds raised from the issue as stated in the IPO draft prospectus.
The Regulator Sebi has debarred Chairman and managing director of Dr. Datsons Labs company who namely Kashi Vishwanathan and Kannan Vishwanathan for three years. It also restricted whole time executive directors Prabhat Goyal and Shashikant B Shinde for one year. The barred process happened as per the regulator’s order.
As of 2011, Sebi had investigated by Datsons in the matter of IPO to find any possible violations of regulations. In May 2011, the company has raised about Rs 117 crore with an initial share sale. In an investigation, Sebi confirmed that the company and its directors have not utilized the net proceeds as stated in the red herring prospectus. They have used the proceeds raised from the IPO for other unstated purposes, said a source.
It also added, ” for this reason, the company directors who received debar notices from the Sebi are used unfair ways behind the back of innocent investors have kept secret information from them. Those directors had mentioned the deceptive information in the offer document.”
To considering such activities, those directors have violated the provisions of SEBI ACT, PFUTP norms and ICDR Regulations, said by a source.
PFTUP: Prohibition of Fraudulent and Unfair Trade Practices
ICDR: Issue of Capital & Disclosure Requirements
According to the reports, the market regulator Sebi has restricted these directors from the capital market. Whole-time executive director barred for one year and chairman and the managing director for 3yr.
As of the reports, these directors’ existing holding securities of units of MF will remain constant until the completion of the restraint period.