Capital markets regulator Sebi on Friday said Synoptics Technologies and its promoters will remain barred from the securities market till the outcome of a probe in a case of alleged siphoning off IPO proceeds.
The company's promoters - Jatin Shah, Jagmohan Manilal Shah and Janvi Jatin Shah have also been debarred by the regulator.
"I...hereby confirm the directions issued vide the interim order dated May 6, 2025," Sebi's whole-time member Kamlesh C Varshney said in the confirmatory order.
In May this year, Sebi had passed an interim order and barred Synoptics Technologies Ltd (STL) and its promoters from the securities market, following allegations of siphoning off IPO proceeds.
In the interim order, the regulator said, "The examination revealed a well laid out plan of the company (STL) and the lead manager, FOCL (First Overseas Capital Ltd), to siphon away funds raised in the IPO".
"The amount transferred ostensibly for meeting 'Issue management fees, underwriting and selling commissions, registrar fees, and other IPO related expenses' was Rs 19 crore and grossly disproportionate to the Rs 80 lakh disclosed as issue expenses in the red herring prospectus of STL." As per the order, the amount accounted for more than 54 per cent of the total proceeds raised by Synoptics through the fresh issue of shares worth Rs 35.08 crore and 35 per cent of the total issue size (Rs 54.04 crore).
Accordingly, Sebi directed FOCL not to take up any new assignments relating to merchant banking activities in the securities market till further directions from the regulator.
