Revocation Order in the matter of Varyaa Creations Limited

What is this order about?

SEBI revoked an interim order concerning Varyaa Creations Limited (VCL), its promoters, and Inventure Merchant Banking Services Private Limited, after finding that IPO proceeds were improperly transferred to third parties without proper disclosure.

Who it concerns

Varyaa Creations Limited, Inventure Merchant Banking Services Private Limited, Pooja Vineet Naheta, Sarika Amit Naheta, Kusum Naheta, Jaineshaa Naheta, Pari Naheta, Vineet Naheta HUF, Amit Naheta HUF

What was found or directed

• VCL's shareholding of promoters frozen until further directions
• VCL restrained from accessing securities market
• Inventure restrained from new merchant banking assignments
• Inventure to appoint Monitoring Agency for pending assignments
• 70% of IPO proceeds (INR 14 Crore) transferred to Maruti, Kaveri, and Overseas on listing day
• Kaveri withdrew INR 4 Crore in cash same day
• Overseas transferred INR 4.98 Crore to 'transpaacific' next day
• Funds transferred without proper disclosure in Prospectus
• Similar pattern observed in Synoptics Technologies IPO

Points worth noting

• 70% of IPO proceeds (INR 14 Crore) transferred to three entities on listing day
• Kaveri withdrew INR 4 Crore in cash within 16 minutes of receipt
• Overseas transferred funds to 'transpaacific' the next day
• Funds transferred without business connection to disclosed purposes
• Similar modus operandi in Synoptics Technologies IPO