SEBI Cracks Down on Varanium Cloud Over IPO Misuse

SEBI has reinforced its decision to prevent Varanium Cloud and its MD, Harshawardhan Hanmant Sabale, from engaging in securities markets. Allegations include misusing IPO funds and manipulating financial data. Varanium failed to contest these accusations effectively. Further actions await the outcome of an ongoing probe.

The Securities and Exchange Board of India (SEBI) has reaffirmed its ban on Varanium Cloud and its Managing Director Harshawardhan Hanmant Sabale from participating in the securities markets. The restriction will remain in place pending the completion of an investigation into claims of improper use of IPO proceeds and manipulation of financial statements.

In an earlier interim order issued in May 2023, SEBI had already taken measures to prohibit Varanium Cloud and Sabale from engaging in market-related activities. Additionally, Sabale was barred from serving as a director or key managerial personnel in any listed company or SEBI-registered intermediary aiming to raise public funds.

The decision followed Varanium's unsuccessful appeal against SEBI's interim order in the Securities Appellate Tribunal (SAT), where the company did not challenge the preliminary findings. SEBI granted multiple opportunities for Varanium and Sabale to present their case, but they did not take advantage of these opportunities, leading to SEBI's confirmation of its initial directives.

(With inputs from agencies.)