Home / Business and Economy / Sebi Bans Trafiksol Promoters for a Year Over IPO Irregularities
Sebi Bans Trafiksol Promoters for a Year Over IPO Irregularities
29 Aug
Summary
- Trafiksol and its promoters received a one-year ban from the securities market.
- Penalties totaling Rs 1.05 crore were imposed for serious regulatory breaches.
- IPO funds were misused, with overstated financial disclosures identified.
The Securities and Exchange Board of India (Sebi) has imposed a one-year ban on Trafiksol ITS Technologies Ltd and its promoter-directors, Jitendra and Poonam Das, barring them from the securities market. This decisive action comes with a cumulative penalty of Rs 1.05 crore, ordered to be paid within 45 days.
The regulator's stringent order addresses multiple serious violations discovered during an investigation into Trafiksol's SME IPO. Complaints arose after the IPO was subscribed 345.65 times in September 2024, with concerns over the proposed deployment of Rs 17.70 crore for software purchases.
Sebi found that financial disclosures overstated operations through unbilled revenue and questionable transactions. Furthermore, a substantial portion of IPO proceeds was slated for deployment based on a fabricated quotation from a vendor lacking credible capability, as noted in Sebi's 85-page order.
The conduct of the promoters, particularly Jitendra Das, was described as egregious. The regulator emphasized that such actions severely undermine the diligence and integrity expected from company promoters seeking public capital. Poonam Das's role stemmed from a failure to exercise due diligence when signing documents.
