SEBI conducted a detailed investigation into the disclosures made by Trafiksol ITS Technologies Ltd in its draft IPO documents and instructed BSE not to proceed with the company's share listing

In October, BSE postponed the listing of Trafiksol ITS Technologies on its SME platform after investor concerns.

Sebi has directed Trafiksol ITS Technologies to refund Rs 45 crore raised through its IPO due to misstatements in the prospectus and suspected collusion with a shell entity. The IPO was oversubscribed by 345 times.

In its 16-page order issued on Tuesday, the SEBI indicated that, following an inspection, it appears that the third-party vendor (TPV) might be a shell company.

Having concluded that vendor as a ‘shell entity’, Ashwani Bhatia, whole-time member directed Trafiksol to refund the money paid by the investors,who have been allotted shares in the IPO. BSE, in co-ordination with the bankers to the issue, should oversee the refund process which shall be completed within one week, the SEBI order said.

In a possible first, the Securities and Exchange Board of India (SEBI) has ordered that refunds be made to investors within one week along with interest after it restricted the listing of Noida-registered Trafiksol ITS Technologies on stock exchange BSE's SME platform last month.

SEBI asked Trafiksol to return the interest amount accrued on the money back to the investors who were allotted the company's shares in the said IPO. Interesting to note that Trafiksol's IPO was oversubscribed 345 times.

The market regulator has proposed stringent norms for the listing of SMEs following such concerns in the segment

In an unprecedented move,Securities and Exchange Board of India ( SEBI ) has directed the Trafiso ITS technologies LTD. to refund the money by the investors, who have been allotted shares in IPO . ‘Trafiksol is directed to refund the money paid by the investors,

After leading exchange BSE delayed the listing of SME IPO Trafiksol ITS Technologies, market regulator SEBI has also initiated a big action. Securities and Exchange Board of India on Tuesday said the SME IPO should be put on hold pending further investigations.