Daijiworld Media Network - Mumbai

Mumbai, Oct 31: The Securities and Exchange Board of India (SEBI) on Thursday barred Gretex Corporate Services Ltd from taking up any new merchant banking assignments for 21 days, citing violations of regulatory norms and inadequate due diligence in a public issue handled by the firm.

In its order, the market regulator said that Gretex failed to maintain the minimum prescribed net worth of Rs 5 crore during the financial year 2019–20, thereby breaching merchant banker regulations.

SEBI also found serious lapses in the firm’s due diligence while managing an SME public issue, where nearly 40% of the IPO proceeds were allocated for leasing office space that was still under construction. The regulator noted that this crucial detail was neither properly ver

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