Sebi Clamps Down on First Overseas Capital
Sebi has restricted First Overseas Capital Ltd from undertaking new mandates for two years and fined it Rs 20 lakh for various violations, such as providing false information and exceeding underwriting limits. The Mumbai-based firm is barred from capital market activities due to non-compliance with regulations.
- Country:
- India
On Thursday, Sebi imposed significant restrictions on First Overseas Capital Ltd, barring it from accepting new mandates for two years. This action comes alongside a Rs 20 lakh penalty for multiple regulatory breaches, including the submission of false information and exceeding underwriting limits.
According to Sebi's 43-page order, the company, known as FOCL, was found guilty of providing misleading information and failing to notify the regulator of acquired securities. Further violations included delayed reporting and the omission of necessary certifications for key recruitment.
Sebi highlighted that FOCL operated significantly beyond its net worth, managing IPOs well above financial limits. Consequently, FOCL is now restrained from participating in the financial markets, with penal actions set to ensure stricter adherence to merchant banking regulations in the future.
ALSO READ
-
Sebi's New Incentive Proposal Revives Bond Market Interest
-
Sebi Proposes New Framework to Ease Compliance for High Value Debt Listed Entities
-
Sebi Proposes Regulatory Overhaul for Unclaimed Securities
-
Streamlined Transfers: SEBI's New Rules for Portfolio Management Services
-
Sebi Proposes New Standard for Mutual Fund Folios to Boost Compliance
Google News