Sebi confirms market ban on Synoptics Tech, promoters for IPO fund diversion

Capital markets regulator Sebi on Friday mentioned Synoptics Applied sciences and its promoters will stay barred from the securities market until the result of a probe in a case of alleged siphoning off IPO proceeds.

The corporate’s promoters are Jatin Shah, Jagmohan Manilal Shah and Janvi Jatin Shah have additionally been debarred by the regulator.

“I…hereby affirm the instructions issued vide the interim order dated Might 6, 2025,” Sebi’s whole-time member Kamlesh C Varshney mentioned within the confirmatory order.

In Might this 12 months, Sebi had handed an interim order and barred Synoptics Applied sciences Ltd (STL) and its promoters from the securities market, following allegations of siphoning off IPO proceeds.

Within the interim order, the regulator mentioned, “The examination revealed a effectively laid out plan of the corporate (STL) and the lead supervisor, FOCL (First Abroad Capital Ltd), to siphon away funds raised within the IPO”.

“The quantity transferred ostensibly for assembly ‘Concern administration charges, underwriting and promoting commissions, registrar charges, and different IPO associated bills’ was Rs 19 crore and grossly disproportionate to the Rs 80 lakh disclosed as situation bills within the pink herring prospectus of STL.” As per the order, the quantity accounted for greater than 54 per cent of the entire proceeds raised by Synoptics by the recent situation of shares price Rs 35.08 crore and 35 per cent of the entire situation dimension (Rs 54.04 crore).Accordingly, Sebi directed FOCL to not take up any new assignments regarding service provider banking actions within the securities market until additional instructions from the regulator.

Sebi noticed that FOCL had undertaken preliminary public providing (IPO) assignments for 20 firms, which had been listed on the SME phase of BSE and NSE from Might 2022 to April 2025.

In July 2023, Mumbai-based Synoptics Applied sciences raised funds by an SME IPO, and FOCL acted because the lead supervisor to the difficulty.

The interim order got here after the Securities and Change Board of India (Sebi) examined the matter on receiving complaints alleging irregularities within the bidding course of following the closure of the IPO.