Mumbai: The Securities and Exchange Board of India (Sebi) has debarred Hinduja TMT from dealing in securities as a capital market intermediary for two years for violating its regulations.

Hinduja TMT, formerly Hinduja Finance Corporation, was the lead manager for Subhash Projects and Marketing’s (SPML) rights issue in 1995. “The intermediary had to take the responsibility for the infractions committed as an intermediary even after the lapse of registration,” the Sebi chairman said in his order dated 11 January 2003.

Hinduja TMT was the lead manager to the rights issue with pre-issue responsibility that included capital structuring, drafting the offer document and marketing the issue. The company was also given a standby underwriting commitment to SPML to the extent of 8,00,000 equity shares.

After the issue, there were a number of complaints regarding irregular subscription and funding of subscription to the rights issue.