SEBI to prohibit Paramount Print Packaging for 5 years
To begin with, SEBI seems to prohibit Paramount Print Packaging and its officials from the capital markets for five years. Because of the company diverting the proceeds of the initial share sale and failing to make true disclosure in the IPO papers.
Besides, the officials that have remained forbidden, namely, the chairman and managing director Divyesh Ashwin Sukhadia. Also, the whole time director Dharmesh Ashwin Sukhadia and former whole-time director Anuj Vipin Sukhadia.
However, Paramount came out with its Rs 46 crores public issue in April 2011. So then, its shares came up listed on the exchanges in May 2011. Hence, SEBI noted that Paramount stood owned by the Sukhadia family. And they collectively held 79.38% shares of the company before IPO and post initial share-sale of 40.45% stake.
Besides, the investigation by the regulator found that Paramount misused the proceeds of the IPO. It has also diverted the funds to entities that did not provide any service and goods as contracted.
Accordingly, the SEBI has forbidden Paramount from the capital markets for 5 years. Also, this remained subjected by the direction of Bombay High Court in pursuance of the liquidation.
Furthermore, the regulator had barred these three officials from the markets. And also have remained prohibited from being associated with any listed company in any capacity.