The Securities and Exchange Board of India (SEBI) has barred Trafiksol ITS Technologies and its promoters, Jitendra Narayan Das and Poonam Das, from the securities market for one year and imposed monetary penalties after finding misleading disclosures and other lapses in the company’s aborted ₹44.87-crore initial public offering (IPO).
The regulator imposed penalties of ₹30 lakh on Trafiksol, ₹50 lakh on Jitendra Das and ₹25 lakh on Poonam Das.
IPO scrutiny
The final order follows SEBI’s investigation into Trafiksol’s September 2024 SME IPO, whose listing was deferred after complaints over the proposed use of issue proceeds. The regulator’s investigation covered alleged misleading financial disclosures, concealment of material facts and false information relating to Oasis Corpcare, from which the company had obtained a quotation for software worth ₹17.70 crore.
SEBI had earlier cancelled the issue and directed the company to refund investors. The subscription money was refunded with interest. “The present case did not result in any loss to the IPO subscribers, since due to regulatory intervention, the issue was ultimately cancelled and the subscription monies were refunded with interest,” SEBI Whole-time member Amarjeet Singh said in a final order on Friday.
The Securities Appellate Tribunal had also dismissed Trafiksol’s appeal against the earlier SEBI order, observing that the company’s decision to approve the software purchase without verifying the vendor’s credentials did not meet “desired corporate governance norms”.
The final order held Jitendra Das directly responsible for key aspects of the misconduct, including the procurement of the fabricated quotation. Poonam Das’s role, SEBI said, arose principally from her failure to exercise due diligence while signing relevant documents.