Description

SEBI confirms restraint orders against Synoptics Technologies Limited and its promoters from participating in securities market following irregularities in IPO bidding process.

Summary

SEBI has confirmed its interim order dated May 06, 2025 through confirmatory order WTM/KV/CFD/CFD-SEC-3/31700/2025-26 dated October 3, 2025, continuing the restraint on Synoptics Technologies Limited and its promoters from participating in securities market. The action follows complaints alleging irregularities in the IPO bidding process on NSE’s SME Platform in June-July 2023.

Key Points

  • SEBI confirmatory order WTM/KV/CFD/CFD-SEC-3/31700/2025-26 dated October 3, 2025 confirms interim order from May 6, 2025
  • Four entities restrained from buying, selling or dealing in securities market until further orders:
    • Synoptics Technologies Limited (PAN: AAMCS4502L)
    • Jatin Shah (PAN: AONPS5463E)
    • Jagmohan Manilal Shah (PAN: ABWPS9290B)
    • Janvi Jatin Shah (PAN: AYAPS9827K)
  • First Overseas Capital Limited (Lead Manager) prohibited from taking new merchant banking assignments
  • Action based on irregularities in IPO bidding process on NSE SME Platform during June-July 2023
  • Entities can close existing derivative positions within 7 days and settle pending pay-in/pay-out obligations

Regulatory Changes

No new regulatory framework changes. This is an enforcement action confirming previous interim directions.

Compliance Requirements

  • NSE members must ensure compliance with the restraint orders
  • Members should refer to consolidated list of debarred entities at: https://www.nseindia.com/regulations/member-sebi-debarred-entities
  • No trades or dealings permitted with restrained entities (Synoptics Technologies Limited and three promoters)
  • First Overseas Capital Limited cannot undertake new merchant banking assignments

Important Dates

  • May 6, 2025: Original interim order issued (WTM/AB/CFD/CFD-SEC-3/31400/2025-26)
  • October 3, 2025: Confirmatory order issued (WTM/KV/CFD/CFD-SEC-3/31700/2025-26)
  • June-July 2023: Period when alleged IPO irregularities occurred
  • Restraint orders effective until further orders (indefinite)

Impact Assessment

Market Impact: High - Complete market ban on company and promoters eliminates their participation in securities market indefinitely.

Company Impact: Severe - Synoptics Technologies Limited and all three promoters barred from securities market operations, effectively freezing company’s ability to raise capital or trade securities.

Regulatory Significance: Sets precedent for enforcement action on SME IPO irregularities. Lead manager First Overseas Capital Limited’s restriction impacts its merchant banking business operations.

Investor Protection: Confirms SEBI’s commitment to investigating and acting on IPO bidding irregularities on SME platforms.

Impact Justification

SEBI confirmatory order imposing indefinite market ban on company and promoters following IPO irregularities; merchant banker restricted from new assignments