SEBI issues showcause notice to Monarch Project
Market regulator SEBI on Tuesday issued a show cause notice to Ahmedabad-based lead manager Monarch Project and Finmarkets in a case pertaining to the public issue of Dhanlaxmi Lease Finance.
By PTI |
MUMBAI: Market regulator SEBI on Tuesday issued a show cause notice to Ahmedabad-based lead manager Monarch Project and Finmarkets in a case pertaining to the public issue of Dhanlaxmi Lease Finance.
The regulator issued the notice to Monarch Project for its failure to follow various provisions of the SEBI Code and Companies Act, especially with regard to handling of the money raised through the public issue.
"Your company as the lead manager of the issue should have ensured that the fund collected is kept in a separate account and that applications are not accepted after the due date," SEBI said, asking Monarch Project to submit its reply within 15 days.
The notice also indicated possibility of several other malpractices in the public issue such as making multiple, fictitious and benami applications, and acceptance of applications after the closure of the issue.
The public issue of Dhanlaxmi Lease Finance opened for public subscription on November 21, 1995 and closed on November 24, 1995.
The regulator issued the notice to Monarch Project for its failure to follow various provisions of the SEBI Code and Companies Act, especially with regard to handling of the money raised through the public issue.
"Your company as the lead manager of the issue should have ensured that the fund collected is kept in a separate account and that applications are not accepted after the due date," SEBI said, asking Monarch Project to submit its reply within 15 days.
The notice also indicated possibility of several other malpractices in the public issue such as making multiple, fictitious and benami applications, and acceptance of applications after the closure of the issue.
The public issue of Dhanlaxmi Lease Finance opened for public subscription on November 21, 1995 and closed on November 24, 1995.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
