SEBI orders Trafiksol to refund IPO proceeds to investors
New Indian ExpressThe Securities and Exchange Board of India has directed Trafiksol ITS Technologies to refund the money collected from investors during its Initial Public Offering. Trafiksol, a Noida-based firm that provides intelligent transportation systems and automation solutions for traffic and toll management projects, launched its IPO in September 2024 on the Small and Medium Enterprises platform of the stock exchange. Following the allotment of shares, SEBI and the Bombay Stock Exchange received a complaint from the Small Investors’ Welfare Association on September 16, just a day before the shares were scheduled to be listed. In a 16-page final order, SEBI said that Trafiksol knowingly relied on fraudulent documentation submitted by a questionable third-party vendor to justify the Rs 17.7 crore earmarked for software procurement in its prospectus. Further, the regulator's probe revealed that the TPV has dubious financials with no prior track record in software development and had been included in the IPO documents based on fabricated profiles and forged financial statements.
History of this topic
Trafiksol IPO: SEBI cancels listing after probe; SME ordered to refund investor’s money within one week
Live MintDiscover Related
![IBC Weekly Round-Up [25th November To 1st December, 2024]](https://www.livelaw.in/h-upload/2024/08/01/552807-weekly-digest-of-ibc-cases.jpg)
