Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: empanelment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: form 3cd
« General »
 Why consumers should welcome GST
 Retailers need to file single GST return every month
 Aadhaar is must for income tax returns if you have one; Here's how you can file it online
 Will it be a tax haven above the law?
 Your mutual fund investment tax efficient? Here are 3 steps to ensure utmost efficiency for your portfolio
 Finally a goods and services tax. But what lies ahead?
 Tax May Rise On Outbound M&As, Indian Mncs’ Investments
 Filing income tax return? Do remember to claim benefits on your reimbursements
 Banks will have a hard slog ahead to get GST-ready
 Clarification regarding applicability of Section 16 (1)(a) of the Companies Act. 2013 with reference to cases under corresponding provisions of Companies Act. 1956
 Introduce indemnity clauses with suppliers on tax compliance: Expert

SEBI tells Vaswani Ind to give investors exit option
July, 12th 2011

The Securities and Exchange Board of India (SEBI) has directed Vaswani Industries to give a withdrawal option to investors in the non institutional investors (NII) and retail individual investor (RII) categories.

SEBI also prohibited Rikhav Securities to act as a syndicate/sub syndicate member for all forthcoming IPOs while Bajaj Consultants and nine of its group companies have been directed to stop bidding in an objectionable manner till further directions.

SEBI had directed stock exchanges on May 19 to withhold the listing of Vaswani Industries following complaints of irregularities in subscription especially huge withdrawals and rejections after IPO closure.

The company had offered one crore shares in the price band of Rs 45-49 a share for subscription and the issue was subscribed 4.16 times. Qualified Institutional Buyers (QIBs) subscribed to just 0.16% of their allotted 50% portion whereas non institutional investors (NIIs) oversubscribed 11.29 times and retail investors oversubscribed 6.83 times. The under subscription in the QIB portion devolved on to the NII and retail investors and they received a higher allotment of shares.

Lower QIB subscription

SEBI has asked Vaswani Industries to give NIIs and RIIs an option to withdraw to the extent by which the allotment ratio was impacted due to lower subscription of QIB portion.

The book running lead manager (BRLM), Ashika Capital has been directed to compute the allotment ratio again in consultation with the BSE and publish the revised share allocation in all newspapers (where the issue advertisements were made earlier) along with the withdrawal option. This option should be kept open to NIIs and RIIs for a 10-day period from the date of the advertisement.

For investors opting to withdraw, refund would be less due to IPO expenses by a maximum of one per cent from the subscription amount.

The BRLM has been asked to open a separate escrow to credit shares being offered for withdrawal; investors opting to withdraw shall enclose a separate delivery instruction slip for transferring the said number of shares into the escrow account.

Depositories have been asked to permit to and fro transfer of these shares from the escrow account and the company and BRLM have been asked to cancel shares not underwritten or taken by other investors identified by the BRLM.

If the subscription level falls below the minimum level required by law, the BRLM has been asked to either buy or arrange for a buyer to maintain the minimum subscription level. Non compliance would result in refund of entire subscription to investors and cancelation of all shares allotted by the company.

Exchanges have been advised to ensure compliance of SEBI directions by the company and the BRLM before granting listing and trading permission.

SEBI has directed the BRLM to refund the money within seven days to investors and cancel allotment of shares if the company fails to provide the withdrawal option within the given time frame.

SEBI said that the investigation under way shall examine role of intermediaries in this IPO and these directions shall not be construed as adverse to Vaswani Industries pending investigation.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions