By IANS,
New Delhi : The Delhi High Court Tuesday refused to stay the initial public offering (IPO) of Bharti Infratel Ltd (BIL) on a petition alleging that the foundation of the issue is fraudulent.
The court asked the Securities and Exchange Board of India (SEBI) to present records relating to its approval to the company for launching the IPO.
A division bench of Chief Justice D. Murugesan and Justice Rajiv Sahai Endlaw said: “We are not issuing notice, we are not saying anything and not passing any order. We will see the records to satisfy ourselves.”
The court would next hear the matter Jan 30, 2013.
The petition was filed by Manish Lamba, an investor, who alleged that the SEBI overlooked the litigation against the company over the issue of its merger/de-merger with Bharti Airtel.
Appearing for SEBI, senior counsel Parag Tripathi told the court that while granting approval to Bharti Infratel issues were examined by the market regulator.
Senior Counsel Neeraj Kishan Kaul, appearing for Bharti Infratel, said that details about pending litigation were there in the prospectus.
The petition alleged that the prospectus had over 700 pages and the investors could not read the bulky document to know the risk involved.