The Securities Exchange Board of India has imposed a fine of Rs 12 lakh on Atherstone Capital Markets, merchant banker, for misstatement and non-disclosures of material developments in the IPO papers of Onelife Capital Advisors, reports from PTI.
The market regulator, through an interim order in December 2011, had barred Atherstone from taking up any new project as a merchant banker till further directions. SEBI confirmed these directions in January 2013, and it continued to be in force until July 2016.
"For the purpose of imposing a penalty, I have considered the prohibition already undergone by notice (Atherstone) for four-and-a-half years as a mitigating factor," Sebi Adjudicating Officer B J Dilip said in an order which was passed on March 15.
Onelife Capital Advisors issued the Initial Public Offerings (IPO) in September 2011 and raised Rs 36.85 crore.
According to the regulator, there were non-disclosures or misstatements in the red herring prospectus (RHP) filed by Atherstone.
"I also conclude that there were certain material developments that took place after the filing of RHP which were neither updated in the prospectus nor informed to the investors through advertisements," he noted.
SEBI said that Atherstone as a registered intermediary of SEBI failed to conduct the duties as a merchant banker who led to misstatement and non-disclosures in the prospectus relating to principal objects of IPO.
"Such gross failure on the part of notice affects the trust and confidence of investors on Sebi registered intermediary, and therefore the conduct of notice cannot be viewed leniently. I consider it a fit case for imposition of a penalty that meets the ends of justice," the adjudicating officer noted.
Therefore, the Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 12 lakh on Atherstone for violating ICDR (Issue of Capital & Disclosure) regulations as well as the code of conduct for merchant bankers.