Description

SEBI settlement order against Markolines Pavement Technologies Limited for failure to submit half-yearly statements of deviation/no deviation in IPO proceeds utilization as required under LODR Regulations 32(1) and 32(8).

Summary

SEBI issued Settlement Order No. SO/JS/YK/2026-27/8557 against Markolines Pavement Technologies Limited, a company listed on the BSE SME Platform, for failing to submit the mandatory half-yearly statement of deviation/no deviation/no variation in utilization of funds raised through its Initial Public Offer (IPO) in September 2021. The matter was settled under SEBI (Settlement Proceedings) Regulations, 2018 after the company filed a settlement application.

Key Points

  • Markolines Pavement Technologies Limited (PAN: AADCM2827P) is listed on BSE Ltd. SME Platform
  • Company failed to submit half-yearly deviation/no-deviation statements for IPO proceeds to BSE for the period September 2021 to September 2024
  • Alleged violation: Regulations 32(1) read with 32(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations)
  • Potential penalty under Section 15A(b) of the SEBI Act, 1992
  • Adjudicating Officer appointed on April 08, 2025
  • Show Cause Notice (SCN Ref No. SEBI/EAD/EAD-2/JS/YK/13815/2025) issued on May 22, 2025
  • Company filed settlement application on June 06, 2025, requesting resolution under SEBI (Settlement Proceedings) Regulations, 2018
  • Settlement proceedings initiated following receipt of the application

Regulatory Changes

No new regulatory changes introduced. This order enforces existing obligations under:

  • Regulation 32(1) of LODR Regulations: Requires listed entities to submit a statement of deviation or variation in use of funds raised through public issues on a half-yearly basis to the stock exchange
  • Regulation 32(8) of LODR Regulations: Specifies the format and periodicity of such disclosures
  • Section 15A(b) of the SEBI Act, 1992: Penalty provision for failure to furnish required documents/statements

Compliance Requirements

  • Listed companies (including SME-platform listed entities) that have raised funds through IPOs must file half-yearly statements of deviation/no deviation/no variation in fund utilization with the respective stock exchange
  • Filings must be made in accordance with Regulation 32(1) and 32(8) of LODR Regulations
  • Non-compliance may result in adjudication proceedings, Show Cause Notices, and potential monetary penalties under Section 15A(b) of the SEBI Act
  • Companies facing adjudication may seek settlement under SEBI (Settlement Proceedings) Regulations, 2018 by filing a timely settlement application

Important Dates

  • September 2021: Markolines Pavement Technologies Limited IPO on BSE SME Platform
  • September 2021 – September 2024: Examination period for non-compliance
  • April 08, 2025: Adjudicating Officer appointed
  • May 22, 2025: Show Cause Notice issued
  • June 04, 2025: Company communicated intent to file settlement application
  • June 06, 2025: Settlement application filed by the company
  • June 09, 2025: Hearing opportunity provided for June 24, 2025
  • June 10, 2025: Company requested adjournment of hearing (granted)

Impact Assessment

This settlement order has limited market or systemic impact, being confined to a single SME-platform-listed company. The matter involves a procedural disclosure lapse over three years rather than financial fraud or investor harm. The settlement route signals that SEBI continues to enforce disclosure obligations even for smaller listed entities on the SME platform. For BSE SME-listed companies that have conducted IPOs, this order serves as a reminder to maintain regular half-yearly compliance filings under Regulation 32 of LODR Regulations. Broader market participants are unaffected.

Impact Justification

Single-company settlement order for a procedural disclosure lapse (non-filing of IPO fund utilization statements) on BSE SME platform; resolved through settlement proceedings with no systemic market impact.