Whole Time Member, SEBI, has passed an Order dated July 11, 2011 in the matter of IPO of Vaswani Industries Ltd. The Order, inter-alia, includes the following directions:-
i. Vaswani Industries Limited shall give withdrawal option to all the investors who have been allotted shares in the non-institutional investors’ category and the retail individual investors’ category for such number of shares by which the allotment ratio was impacted due to withdrawals/rejections in the aforesaid categories. The withdrawal option shall be kept open for a period of ten days.
ii. Investors who apply in the withdrawal option shall enclose a Delivery Instruction Slip for the purposes of transferring such number of shares as may be decided in the revised share allocation and the same shall be credited to a separate escrow demat account.
iii. In the event of refund/withdrawal on the exercise of the withdrawal option by an investor, the Company may deduct the expenses incurred in connection with its IPO, to be certified by the merchant banker and the same shall be appropriately apportioned from the subscription amounts due to the investors. However, the maximum expense so deducted from any investor in exercise of the withdrawal option shall not exceed 1% of the amount invested by any investor.
iv. On closure of the withdrawal option, if the subscription level after such withdrawals falls below the minimum level of subscription as required by law, the BRLM, Ashika Capital Limited, may purchase or arrange purchase through any investor(s) identified by it of such number of shares so as to ensure that the subscription does not fall below the minimum level of subscription. Non-compliance of such condition shall result in refund of entire subscription money to the investors and cancellation of all the shares so allotted by the Company.
v. In the event of the Company failing to provide withdrawal option within the given time frame, the BRLM shall take necessary steps to ensure that allotment of shares is cancelled and money is refunded to investors within seven days of such failure.
vi. Rikhav Securities Limited is prohibited to act as a syndicate member/sub-syndicate member for all forthcoming issues till further directions.
vii. Bajaj Consultants Private Limited and its group entities, namely, Bajaj Commodities Trading Private Limited, Bajaj Share and Stock Brokers Private Limited, Vinodkumar Bajaj & Company HUF, Bajaj Consultants Private Limited, Bajaj Retail India Ventures Private Limited, Bajco Consultants Private Limited, Mr. Rajkamal Ramniwas Bajaj, Ramniwas Bajaj & Company and Mr. Vinodkumar Ramniwas Bajaj are directed to cease and desist from bidding in an objectionable manner till further directions.
viii. The ongoing investigation shall inter alia examine in detail the role of the intermediaries involved in the Initial Public Offer of Vaswani Industries Limited.
The above directions are in continuation of the earlier Order dated May 26, 2011 in the matter.
The full text of the order is available on the website: www.sebi.gov.in