SP Tulsian view on Vaswani Industries

Vaswani Industries is a very serious case and I think SEBI has rightly taken this step, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Vaswani Industries is a very serious case and I think SEBI has rightly taken this step. If you see the involvement of the book running lead manager, in this case this has been Ashika Capital. In fact they have been seeing these kinds of manipulations being carried out in other two-three issues also. In fact I am unable to accept this argument that this can go alone, can be done alone by the company. In fact this is an excess of the issuer that is company, book running lead manager and operator."

He further added, "If you take the case here - 2,300 HNI applications having withdrawn the applications with the bogus cheques given of the non-existent banks and all that is a serious case and I think SEBI must examine all these things. In fact what happens in these cases that there are types of people those who are available, those who source the 500 and 1000 applications for the companies. These kinds of people are active in Bombay as well as in Ahmedabad. In fact they arrange this for these kinds of applications."

"When you see the mass withdrawal or mass stoppage of these applications, definitely there is, one must pin point and one must try to identify that operator or that person also. I hope that SEBI because when we heard the SEBI Chief giving interview on the channel, he has been very categorical that he will take strict action against these kind of IPO