Reliance Insurance files fresh IPO
papers, removes Edelweiss as
merchant banker
Feb 11, 2019,
NEW DELHI: Reliance General Insurance, part of Anil
Ambani-led Reliance Group, has filed fresh papers with
SEBI to float an initial share sale after the regulatory
approval for its IPO lapsed in November, market sources
said on Monday.
According to the sources, the company's IPO comprises
fresh issue of shares worth Rs 200 crore, besides an offer
of sale of 79,489,821 shares by Reliance Capital
The company has removed Edelweiss as one of the lead
merchant bankers to manage its initial public offer (IPO),
they added.
The removal comes following the Reliance Group accusing
Edelweiss Group entities of "illegal" and "motivated" actions
in invoking the pledged shares of the group's three listed
firms and selling them in open market causing a steep fall in
share values.
Further, it has appointed CLSA India and IndusInd Bank
replacing UBS investment company and IDBI Capital. Also,
it has roped in Yes Securities. Other merchant bankers --
Motilal OSWAL Investment Advisors, Credit Suisse
Securities, Haitong Securities -- will continue to be
associated with the company's IPO
Sebi Fines 6 Merchant Banks for
Disclosure Lapses in CARE IPO
 
 November 28, 2018
In a major clampdown for "suppression of
material facts" in IPO documents, the
Securities and Exchange Board of India
(Sebi) on Friday penalised merchant
banking arms of State Bank of India
(SBI), ICICI Bank, Kotak Mahindra Bank,
IDBI Bank, DSP Merrill Lynch and
Edelweiss groups for lapses during the
public offer of rating agency CARE two
years ago.
The six merchant banks have been asked
to pay a fine of Rs. 1 crore - the maximum
penalty applicable for violation of
disclosure related norms in IPO
documents - within 45 days.
Taking a strong view about the violation
of Sebi norms as also the Code of
Conduct for merchant banks and book-
running lead managers (BRLMs) for
public issues, Sebi said in its 86-page
order, "While making disclosures in the
Red Herring Prospectus, the BRLMs
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.
In this case, the bankers had made
disclosure of one of the conditions under the
FDI route in the RHP, terming it as "a
material disclosure" because CARE had
specifically sought such approval from the
Reserve Bank of India (RBI).
At the same time, they omitted the disclosure
of another condition applicable to the Offer
under the FDI route (though the compliance
of the same was specifically directed by the
RBI while granting exemption to non-resident
investors participating in the offer) by
unilaterally assuming the non-applicability of
the said condition.