The regulator, on the other hand, also forbids Sabale from being a director or key managerial personnel of any listed company, any Sebi-registered intermediary, or any company that is planning to raise money from the public until further orders.
Sebi has banned Varanium Cloud from the securities market together with the promoter and managing director, Harshwardhan Hanmant Sabela, for a period of unspecified time for both misusing the IPO proceeds and manipulation of corporate financial accounts through the recording of fake purchases and sales.
On top of that, the regulator has barred Sabale from taking up the position of director or manager in any listed company and also in any Sebi-registered intermediary or enterprise that intends to raise public money until it is reversed.
In its interim order passed on Friday, the Sebi said, “The main reason for the alleged irregularities in the case is the SME IPO of Varanium, which went on through the bonus issue and stock split followed by the rights issue.
“Obviously, I can now write that the IPO capital as well as the further investments from the rights issue have never been used for the stated purpose stated in the offer documents. Instead, the promoter probably withdrew part of the IPO money that was intended for trading company BM Traders without disclosing its purpose.
In addition, Sabale was the creator of a mysterious network of complicated deals and attempts to hide the reality of the company’s activities.
However, the Securities and Exchange Board of India has outlined Varanium’s public announcement, through which the investors thought that Varanium is working in the most widely used arena and that the that the company has access to greenfield areas.
It is in this process of what it is projecting that its promoter and Varanium found themselves involved in pecuniary transactions that were only paper-based, and this was all followed by claims that their work was not happening on the ground.
