SAT asks Sebi to complete PNB Investment Services probe

The Securities Appellate Tribunal (SAT) has directed Sebi to complete its probe against PNB Investment Services in an IPO matter within two months, failing which the regulator's interim order will be upturned.

SAT has directed Sebi to complete its probe on alleged irregularties in the Initial Public Offering (IPO) of Taksheel Solutions within two months. The tribunal has said that once the investigation is complete, appropriate action should be initiated regarding PNB Investments and its senior official within one month.

Sebi had restrained PNB Investment Services and its Managing Director and CEO L P Agarwal from taking up any fresh assignment related to public offers till further directions in the IPO matter on Taksheel Solutions Ltd.

In an order dated November 20, SAT said that Sebi " shall complete the investigation, qua the appellants (PNB Investment Services and Agarwal), within a period of eight weeks from today and take further appropriate necessary action, if any, within four weeks thereafter ".

Further SAT ruled that in case the market regulator fails to adhere to the time limit "  the interim order dated December 28, 2011 as confirmed by the order September 7, 2012 qua the appellants, shall stand vacated ".

A Sebi probe had alleged that Taksheel Solutions and its directors had made various misstatements in the offer documents, concealed vital information and siphoned off a part of the IPO proceeds to certain entities.

The regulator had alleged that merchant banker PNB Investment Services -- a wholly owned subsidiary of Punjab National Bank -- failed to carry out adequate and independent due diligence while working as a book running lead manager to the issue.