The Securities and Exchange Board of India (Sebi) imposed a one-year ban on the access of Trafiksol ITS Technologies and its promoters, Jitendra Narayan Das and Poonam Das, to the securities market on Friday. Furthermore, the regulator levied a total fine of 1.05 crore rupees for alleged violations during the company's Initial Public Offering (IPO) worth 44.87 crore rupees for small and medium enterprises.
This final decision was reached after Sebi investigated Trafiksol's planned IPO of 44.87 crore rupees. The planning of this IPO was postponed in September 2024 due to complaints raising concerns about the alleged use of funds, including 17.70 crore rupees allocated for purchasing software from Oasis Corpcare.
Subsequently, the regulator ordered that the IPO proceeds be held in an escrow interest account and then mandated the return of funds to investors and the cancellation of distributed shares.
Sebi discovered numerous serious violations, including misleading financial statements, concealment of material facts, and presentation of false information regarding Oasis. The regulator asserted that the company's financial reporting exaggerated its operations, and a fabricated quotation was used for a significant portion of the intended issue funds.