Confirmatory Order in the matter of Synoptics Technologies Limited

What is this order about?

SEBI issued a confirmatory order regarding Synoptics Technologies Limited's IPO, examining misuse of IPO proceeds and irregularities in fund transfers.

Who it concerns

Synoptics Technologies Limited, First Overseas Capital Limited, Jatin Shah, Jagmohan Manilal Shah, Janvi Jatin Shah

What was found or directed

• Noticees 1, 3, 4, and 5 restrained from buying, selling, or dealing in securities market until further orders
• Noticee 2 (First Overseas Capital Limited) restrained from new merchant banking assignments until further directions
• Transfers of INR 19 Crore from escrow account to entities not matching disclosed accounts
• Funds transferred for strategic acquisition and working capital but classified as EMDs repayable after 3 years
• Agreements with CN IT Solutions and ABS Tech Services executed before IPO proceeds credited
• Bank accounts provided by FOCL did not match actual account holders
• Company claimed INR 12 Crore for strategic acquisition but transferred INR 13 Crore
• Payments classified as loans and advances increased from INR 1.70 Crore to INR 21 Crore

Points worth noting

• INR 19 Crore transferred from escrow account on July 12, 2023, a day before listing
• Agreements with CN IT Solutions and ABS Tech Services shared identical terms and address
• Funds transferred to accounts held by different entities (Sachiel Exim, Transpaacific Shipping, Dev Trading)