Morepen Labs torpedoed by SEBI

Morepen Labs is in the news today and not in a good way. The stock has lost almost 17.5% in the morning trades, to hit an intra day low at Rs.18, which is not too far from its 20% LC at Rs.17.40.

The company has been banned by SEBI from accessing the security market, restraining it from buying, selling or otherwise dealing in the securities, either directly or indirectly or in any other manner whatsoever, for a period of one year.

The company has clarified that this pertains to the year 2003 which has been finally settled by the SEBI yesterday. It stated  that there is no impact on the existing securities listed with the Stock Exchanges as well as no financial implications on the business operation of the Company, of the said order.

Additionally, with reference to the ongoing preferential issue of fully convertible warrants (to be converted within 18 months), the company is seeking guidance regarding implication of the SEBI's order and process to be followed to complete the said preferential issue of warrants.