Sebi Launches Probe into Trafiksol's IPO Disclosures

Sebi is investigating Trafiksol ITS Technologies' IPO disclosures over potential irregularities. The company's heavily oversubscribed IPO raised concerns about fund usage, specifically for software procurement. BSE postponed the listing after complaints, and Sebi instructed it to retain IPO proceeds in escrow during the investigation.

On Friday, the Securities and Exchange Board of India (Sebi) announced a comprehensive investigation into SME firm Trafiksol ITS Technologies Ltd's IPO disclosures. The financial market watchdog directed the Bombay Stock Exchange (BSE) to halt the company's share listing pending investigation results.

Sebi has ordered the IPO proceeds to be secured in an interest-bearing escrow account, restricting access for Trafiksol and its affiliates. The regulatory body aims to complete the investigation within 30 days after BSE postponed Trafiksol's listing over investor concerns.

The probe follows allegations of discrepancies, particularly regarding funds allocated for software procurement. The vendor was alleged to be a retail trader rather than a software developer, leading to questions about misleading investors and possible misappropriation of IPO funds. New procurement measures and oversight by the BSE are proposed as part of the resolution.

(With inputs from agencies.)