SAT insists on SEBI’s order to stop Trafiksol’s transaction technology

The Securities Appeals Court (SAT) maintained the decision of the Indian Securities and Exchange Commission (SEBI) to order the TECHNOLOGIES LTD of TRAFIKSOL to refund BleakInvestors are 450 million and stop their share.

The ruling follows the SEBI order on December 3, and the order found that the company violated various regulations related to the first public offering (IPO) of SMEs.

Trafiksol, rise up BleakMarket regulatory agencies have instructed 4.5 billion rupees through its excess IPO in September to refund investor funds within a week. The task of BSE is to supervise the refund process.

The decision was after the SEBI survey discovered the serious problems of the IPO, including the major statement in the company’s prospectus and collusion with the “shell entity”.

Waiting for the detailed order of the appeal court.

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In the SEBI ruling, all members Ashwani Bhatia emphasized the importance of protecting the interests of investors and pointed out that their funds have been locked for several months. “The most cautious action is to indicate the company’s funds raised through the IPO.”

Trafiksol’s IPO encountered an overwhelming interest, more than 345 times. It was originally scheduled to be listed on the Bse SME platform on September 17. However, after complaining that the funds were not distributed properly, BSE was postponed and demanded investigation, which eventually led to SEBI intervention.

SEBI found a series of irregular actions during the investigation. Trafiksol’s IPO file shows that the funds raised will be used for software procurement. However, the survey shows that a third -party supplier (TPV) for purchasing is a “shell entity” with suspicious finances.

The SEBI survey found that under suspicious, TPV’s financial statements were signed and suppliers had no reliable records in software development.

The market regulatory agency’s order also criticized TRAFIKSOL failed to provide a reliable explanation for the communication with suspicious suppliers. Although the company claims to follow appropriate procurement procedures, Sebi rejected this defense and pointed out that TRAFIKSOL’s senior management, especially its managing director, must know that the TPV certificate is fabricated.

Although Trafiksol claims that it is only an intermediary agency, SEBI concludes that the company participates in cover and cannot conduct an IPO. SEBI further instructed the company to cancel the stock that has been transferred to the investor Demat account.

The company specializes in intelligent transportation systems and traffic management solutions. The company has learned that once the procedures are being proceeded, it may re -apply for an IPO.