Sebi Orders Trafiksol ITS Technologies to Refund Rs 45 Crore IPO Amid Fraud Allegations

The market regulator Sebi has ordered Trafiksol ITS Technologies to refund Rs 45 crore to investors after identifying fraudulent misstatements in their IPO prospectus. The directive follows concerns raised by the Small Investors' Welfare Association, revealing that Trafiksol relied on a shell entity to bolster its documentation.

In a decisive move, Sebi has mandated that Trafiksol ITS Technologies return Rs 45 crore collected through its IPO due to misleading claims in its prospectus and alleged connections with a shell entity.

Trafiksol, a Noida-based company, had its IPO oversubscribed, drawing bids over tenfold of the original target, but concerns over fraudulent practices derailed the listing.

Sebi's investigation exposed that Trafiksol presented unreliable documentation from a questionable third-party vendor, leading to this refund directive, emphasizing investor protection.

(With inputs from agencies.)