The Securities and Exchange Board of India (SEBI) debarred the Inventure Growth and Securities Limited (IGSL) and its directors for 4 years from the securities market for concealing “material Information” and making incorrect and inadequate disclosure in IPO documents.

The regulator conducted an investigation in the light of IGSL’s initial public offer (IPO), and found out that the company has ill-treated the proceedings received from initial offerings by utilising them for activities that was not disclosed in the prospectus.

Other than that, IGSL’s IPO which came out in July 2011 made inaccurate statements in the prospectus regarding raising bridge loans and other financial arrangements, said in the order issued by the Securities and Exchange Board of India.

The SEBI also has mentioned the fact that the company’s managing directors, compliance officer, CFO and nine other directors were involved in giving false certificate in the prospectus and in other irregularities regarding information disclosure which violated the ICDR regulation.

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