Mumbai: Markets regulator SEBI disposed of proceedings against IL&FS Financial Services Ltd without issuing any direction against it in a matter pertaining to alleged violation of underwriter norms.
The firm is a SEBI registered underwriter. The order came after Ministry of Corporate Affairs (MCA) forwarded a report to SEBI to ascertain if the underwriter, which is a 100 percent subsidiary of Infrastructure Leasing & Financial Services Ltd (IL&FS), was qualified to be a fit and proper person to continue as a SEBI registered intermediary.
Serious Fraud Investigation Office had conducted an investigation into the affairs of IL&FS and its subsidiary companies responsible for the credit crisis. It had submitted its report to the MCA which was subsequently forwarded to SEBI.
The report has pointed out various irregularities, showing apparent violation of various provisions of the Indian Penal Code, Companies Act, 1956, the Companies Act, 2013 and the RBI Act, 1934, leading to raising of integrity issues in respect of IL&FS Financial Services.