“Under the belief, this story was first published on 01.08.2024 that SEBI had issued a show cause notice to the company and its directors. However, later it came to our knowledge that the document related to this case was a draft. , Which was circulated internally in SEBI and it was not sent to the company or its directors. Directors-Kulbhushan Parashar and Harpreet Kaur are also named after some other entities and sent notice to the firm on June 19 and its directors on 23 July “It is wrong. The situation has been cleared about the article below. . “
Delhi’s merchant banker Corporate Capital Ventures Limited has come under a regulatory scanner for alleged violation of the rules of merchant banking. This merchant banker has managed some SME IPO. The Securities and Exchange Board of India (SEBI) has already sent notices to this merchant banker Enti, which has two directors -Kulbhushan Parashar and Harpreet Kaur with some other Entis. Moneycontrol has seen a copy of this notice.
SEBI started the investigation after receiving a complaint in the case. In the complaint, it was alleged that Kulbhushan Parashar bought some shares of it through his relatives before the company’s listing. SEBI ordered an inquiry against the company. The company and its directors were examined between August 2022 and June 2024. During this, corporate capital ventures played the role of merchant banker for six SME IPOs. These included Oriana Power, Annapurna delicious, Dronacharya Ariel Innovation, Creyss Advertising, Creative Graphics Solutions India and Rocking Deal Circular Economy.
After the investigation was completed, the regulator appointed one of his officers as ‘nominated Authority’ on June 19 and sent a notice to the firm and its directors on 23 July. The notice also includes the names of Kulbhushan Parashar HUF, Jagdish Prasad Sharma, Unizon Fintech Private Limited and Seema Savatal.
Meanwhile, according to the complaint received by SEBI from an unknown source, 25,000 equity shares and 25,000 bonus shares were issued to Kulbhushan Parashar’s relatives on the private placement basis. This allotment was done to Jagdish Kumar Prasad and Prasad has been described as a close relative of Kulbhushan Parashar in Rockingdils’ IPO Prospectus.
The complaint received from an unknown source also alleges that Unizon Fintech Private Limited subscribed to the IPO of creative graphics and rocking deals. Both the issue was managed by Corporate Capital Ventures. The Unizon Fintech Private Limited has Kulbhushan Parashar Director and also has a stake.
However, Merchant Banking Entity has denied that SEBI receives notice. In response to an email of Moneycontrol, he said, “First we want to make it clear that corporate capital ventures have not received any cause notice from SEBI.” Meanwhile, the email sent to SEBI did not get a response to this until the story was published.
This issue becomes very important, as the SME IPO segment has been on SEBI radar for some time. Many SME IPOs have seen a lot of subscription. After that the listing gence has also been very high. Recently, the IPO of Hoac Foods was subscribed to the 2013 times. The issues of Kayce Energy & Infra and Medicamen Organics were subscribed to 1052 times and 993 times respectively.