SBI Cards and Payments IPO may postpone due to the investigation of the market regulator on SBI Fund Management:
To begin with, the SBI Cards and Payments Initial Public Offer (IPO) may delay due to the investigation of the parent company. As per the sources, the SEBI investigating the SBI Mutual Fund arm. Due to the, claim of trading of Manappuram Finance shares by using price-sensitive information.
The SBI was the parent company of the SBI Mutual Fund as well as SBI Cards and Payments. The market regulator, SBI Cards, and SBI MF did not want to react to this issue. SBI Funds Management one of the subdivisions of SBI started unethical actions against the Security and Exchange Board of India.
Also, the SBI Cards declared the issuing of the draft prospectus. Already, the SBI Funds Management reacted on the received cause notices from the market regulator. But, the SEBI, doesn’t issue any orders for the SBI Cards.
On 5th Feb 2020, the market regulator SEBI updated its rules and regulations for IPOs, It was also one of the reasons for the delay of SBI Cards IPO. As per the previous rules in 2006, Monitoring of draft paper only for the 90 days suspension from issuing show-cause notice. The SBI and Carly Group held nearly 76% of the SBI Cards IPO stake.