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Informist, Friday, Jan. 3, 2025

 

MUMBAI – The Securities and Exchange Board of India on Wednesday issued an administrative warning to JM Financial, one of the book-running lead managers for the initial public offering of Western Carrier (India) Ltd, for non-compliance with norms, the company informed exchanges on Friday. 

 

The warning was issued as the Western Carrier sought approval for incremental authorised share capital after the issue was already open for offer. The issue opened for subscription on Sept. 13, and the company took permission to increase the authorised share capital on Sept. 16. According to the warning letter issued by SEBI, "the approvals for incremental authorised share capital should have been taken prior to opening of the issue and not after opening of the issue".

 

SEBI also mandates that the lead managers are required to exercise due diligence and satisfy themselves with all aspects of the issue, including the veracity and adequacy of disclosure in the draft offer document and the offer document. Hence, according to SEBI, the lead managers related to the initial public offering did not adhere to the guidelines as their client received the approval to increase the size of authorised share capital after the offer opened for subscription.

 

Factoring in the non-compliance, SEBI has advised the lead managers to be careful in the future and improve their compliance standards to avoid recurrence of such instances. JM Financial said the warning will not have any impact on its financials, operations or other activities. At 1507 IST, shares of the company traded 2.3% lower at INR 130.64 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Vidhushi RajPurohit

Edited by Avishek Dutta

 

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