SEBI gives breather to IL and FS subsidiary

 The firm is a SEBI registered underwriter. The order came after Ministry of Corporate Affairs (MCA) forwarded a report to SEBI to ascertain if the underwriter, which is a 100 percent subsidiary of Infrastructure Leasing & Financial Services Ltd (IL&FS), was qualified to be a “fit and proper person” to continue as a SEBI registered intermediary.

 Serious Fraud Investigation Office had conducted an investigation into the affairs of IL&FS and its subsidiary companies responsible for the credit crisis. It had submitted its report to the MCA which was subsequently forwarded to SEBI. The report has pointed out various irregularities, showing apparent violation of various provisions of the Indian Penal Code, Companies Act, 1956, the Companies Act, 2013 and the RBI Act, 1934, leading to raising of integrity issues in respect of IL&FS Financial Services.

 SEBI has barred Birla Pacific Medspa Ltd, Yashovardhan Birla and eight others from the securities market for two years for mis-utilisation of the IPO proceeds. Birla Pacific Medspa, which came out with offer documents in March 2011, had floated its over Rs 65-cr IPO in June 2011. SEBI found it made misstatements in the prospectus.