IPO money will have to be returned with interest, SEBI took historic step against this company

SEBI has taken a big decision regarding SME company Trafficsol ITS Technologies. SEBI ordered the company that it will have to return the investors’ money. The biggest thing is that the company will return the money along with interest to the investors who were allotted the IPO of this company.

The money will have to be returned within so many days

Securities and Exchange Board of India (SEBI) while giving the order said that Trafficol ITS Technologies will have to return the money of its investors within 1 week. For this, SEBI has entrusted the responsibility of monitoring the refund to BSE and merchant bankers. SEBI has said in the order that along with the withdrawal of the amount, the depository will have to transfer the shares to a separate demat account. After this, the company will then cancel the shares issued to the investors as per the prescribed procedure.

Why did SEBI take this decision?

In fact, in October 2024, SEBI had instructed BSE to stop the listing of the company. This is because, SEBI was conducting a detailed investigation into the disclosures made in the draft red herring prospectus filed by Trafficsol ITS Technologies.

IPO listing was to happen on this day

Let us tell you, the listing of Trafficsol ITS Technologies was to happen on BSE SME platform on 17th September. But, SEBI had banned this listing. You will be surprised to know that this IPO was subscribed 345 times after opening. 64 lakh new shares were issued in this IPO, which opened between September 10 and September 12.

What did the company say on the allegations

In October, when SEBI had leveled allegations against the company, the company had issued a statement saying that in response to the allegations, the company has informed SEBI and BSE that it has now decided to cancel the software purchase scheme mentioned in its DRHP. Have decided. Apart from this, TrafficSol had further told BSE that it will seek new proposals from vendors and the contract will be awarded only after the approval of the shareholders.

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