CORPORATE
SEBI tells Trafiksol ITS Technologies to refund IPO money to investors
- IBJ Bureau
- Dec 04, 2024
The market regulator has stopped the IPO of Trafiksol ITS Technologies and asked the company to refund the money to investors.
In an order issued on Tuesday, the SEBI said that the company should approach market afresh after the ongoing proceedings initiated by the regulator are concluded and subject to any directions issued.
Trafiksol had said that the IPO proceeds would be used partly to purchase software from third-party vendor. But according to the complaints, this third-party vendor had not filed its financial statements for more than three years. In September, BSE had asked the company to defer the listing since certain queries still needed answering.
The SEBI order said that Trafiksol was directed to refund the money paid by the investors, who had been allotted shares in the IPO.
BSE in coordination with the bankers to the issue has been asked to oversee the refund process which is to be completed within one week from the date of the order. Once the money is credited to the bank account of the applicants, the depositories have been directed to transfer the shares of the company which have been allotted pursuant to the IPO, to a separate demat account opened in the name of the company. The company has been directed to cancel the shares which have been so transferred to the account mentioned above by the depositories.
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