Mumbai: The Securities and Exchange Board of India (Sebi) has barred merchant banking outfit First Overseas Capital from dealing in the securities market and from taking any new IPO mandate for two years for allegedly violating norms related to underwriting obligations.
It has also imposed a fine of ₹20 lakh on the firm.
The regulator had conducted an inspection of First Overseas Capital for the period from April 1,2022 to October 31,2023.
The inspection revealed that the merchant banker had not maintained adequate net worth, indulged in business other than that of the securities market, undertook underwriting obligations more than 20 times of its net worth, accepted public depositors for fulfilling underwriting obligations and for failing to intimate Sebi about acquiring securities of companies whose issues were managed by it, among other things.
Last year in October, Sebi issued an interim order and show cause notice to the company.
