The Securities Appellate Tribunal (SAT) has set aside Securities and Exchange Board of India (SEBI)'s order that restrained merchant bank Chartered Capital and Investment and its two senior executives from taking up new assignments related to public offers, reports PTI.

 

It also directed the market regulator to complete the investigation and take appropriate decision in this case by 31 December 2012.

 

SEBI through its interim order had restrained RDB Rasayan IPO's merchant bank Chartered Capital and Investment Ltd and its MD Mohib Nomen Khericha and Vice President Manoj Kumar Ramrakhyani from being involved in new public offers from the securities market.

 

"The appellants (Chartered Capital and Investment Ltd, Khericha and Ramrakhyani) have already suffered restraint for a period of nine months and if ultimately found guilty of not exercising due diligence, appropriate order can be passed against them on conclusion of the proceedings," SAT said in its order dated 25th October.

 

"...We, therefore, set aside the impugned order confirming the ex-parte ad interim order against the appellants," it added.

 

In addition, the tribunal said it has directed SEBI "to complete the investigation and take appropriate decision qua the appellants by 31 December 2012." 

 

SEBI's investigations into RDB Rasayans IPO is primarily focussed on disclosures made in the offer documents, the bidding pattern, trading on first day of listing and utilisation of IPO proceeds.

 

During its probe, SEBI had said it found lack of due diligence on the part of RDB Rasayan IPO's merchant bankers, Chartered Capital and Investment Ltd.

 

Polymer manufacturer RDB Raysans Ltd came out with an issue of Rs35 crore at a price of Rs79 per share in September 2011.