New Delhi: The capital market regulator SEBI not happy over the violation of rules on the part of the two companies. SEBI has ordered an inquiry, putting a hold on the preferential allotment of LIC Housing and Barbecue Nation. SEBI has asked the exchanges to review these preferential issues. Actually, SEBI has started a preliminary inquiry on the proposal of the preferential issue on behalf of both the companies.
Violation of rules done while fixing the price
LIC Housing and Barbecue Nation have been accused of violating norms while setting the prices in their preferential issue. According to information received from sources by CNBC TV18, SEBI has asked the exchange to review the preferential allotment issue. This exchange has issued notices to both the companies. The exchange is awaiting a response from LIC Housing and Barbecue Nation.
Notice issued on violation of which rule
According to sources, this notice has been issued by the exchange to both the companies in the matter of violation of the Articles of Association. The Extraordinary General Meeting (EGM) of companies is scheduled to be held on 19 July 2021 on the Preferential Issue. LIC Housing plans to raise Rs 2,334 crore through preferential allotment. At the same time, Barbecue Nation plans to raise Rs 100 crore through a preferential issue.
