Markets regulator Sebi barred Keynote Corporate Services and Keynote Capitals from taking up new assignment for one month for indulging in unfair and manipulative practices in Emmbi Polyarns' IPO.
The company's name was later changed to Emmbi Industries.
The regulator has prohibited Keynote Corporate Services from taking up new assignment as merchant banker for one month while it has restrained Keynote Capitals from taking up any new assignment as underwriter for one month.
The Securities and Exchange Board of India (Sebi) said these firms were assisting and enabling three other entities to subscribe to the shares of Emmbi Polyarns.
"Had the connected/related and/or known entities not placed bids for large subscriptions on second day of bidding period, in all probability, the IPO would have been under subscribed leading to devolvement of the underwriting obligations of the noitcees...," the regulator said.
In his order, Sebi Whole-Time Member Rajeev Kumar Agarwal said the "noticees employed an unfair and manipulative device to avoid their underwriting obligations to ensure full subscription of the IPO".
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