Securities Appeal Tribunal (SAT) on Friday upheld the order of market regulator SEBI against Traffic Ficcol ITS Technologies. In December, the market regulator directed TrafficSol to return the money to investors who were allocated shares under the IPO. Trafficksol’s Rs 45 crore IPO was scheduled to be listed on BSE SME platform in September 2024. But it was stopped after complaints of the use of the amount received in the IPO and wrong revelations. This issue received about 345 times applications. The order was issued by SEBI in October 2024 after which a detailed investigation into the matter was done.
In the December order, SEBI had indicated the suspected nature of the third party vendor, causing the traffic to buy software through about 40 per cent of its IPO. SEBI said that the third party vendor was a mask unit and alleged that the company tried to cover up it when the vendor was investigated. Initial investigation by SEBI found that the third party vendor had not submitted financial statements to the Ministry of Company Affairs for more than three years and did not earn any revenue last year whose financial statements were submitted.
Apart from this, the financial description of the last three years of the vendor was signed on the same day a few days before the listing. The registered office of the vendor was also closed and his GST returns could not match the business revealed.