In November last, capital market regulator SEBI had slapped Rs 1 crore fine on merchant banking arms of Kotak Mahindra, SBI, ICICI, IDBI, DSP Merrill Lynch and Edelweiss groups for lapses during the public offer of rating agency CARE.
'Kotak Mahindra Capital and others' have moved the tribunal and the appeal is at "admission" stage, as per the latest update on the SAT website.
In its order dated November 28, SEBI had said that "while making disclosures in the Red Herring Prospectus, the BRLMs (Book Running Lead Managers) cannot pick and choose some material facts that they prefer to disclose and suppress some material facts.
"If material facts are suppressed or distorted as in the extant case, the very safety and integrity of the securities market would become a cause of concern for the regulators and the investors."
The IPO came in December 2012, prior to which these six bankers had filed a Red Herring Prospectus for the public issue involving sale of nearly 72 lakh shares.

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