Markolines Settles SEBI Proceedings Over IPO Proceeds Disclosure Lapses, Pays ₹12.35 Lakh

Markolines Pavement Technologies Limited, an SME on Monday settled adjudication proceedings initiated by the Securities and Exchange Board of India (SEBI) over its failure to file statements of deviation or no deviation in the utilisation of IPO proceeds, with the regulator accepting a settlement amount of Rs 12.35 lakh.

The proceedings stemmed from an examination report received by SEBI from BSE concerning the failure of the applicant, a company listed on the BSE SME platform, to file statements of deviation or no deviation in the utilisation of IPO proceeds raised in September 2021.

SEBI's examination for the period of September 2021 to September 2024 alleged that such statements were not submitted on a half-yearly basis, violating the mandate under Regulation 32(10 read with Regulation 32(8) of the LODR Regulations.

Pursuant to these findings, a show cause notice was issued to the company in May 2025, calling upon it to explain why proceedings should not be initiated against it. Thereafter, the company sought to settle the adjudication proceedings under the SEBI (Settlement Proceedings) Regulations, 2018. During meetings with SEBI's Internal Committee (IC), it confirmed that it had subsequently filed the requisite statements with BSE.

The IC recommended a settlement of Rs. 12.35 lakh after deliberations, and the company accepted it. The recommendation was subsequently upheld by the High Powered Advisory Committee and approved by a panel of Whole Time Members in March 2026.

The company remitted the settlement amount on April 15, 2026, and the receipt was confirmed by SEBI.

In view of the settlement payment, the Adjudicating Officer, Jai Sebastian, formally disposed of the proceedings in terms of Section 15JB of the SEBI Act, read with Regulation 23(1) of the Settlement Regulations.

However, the order clarifies that it is without prejudice to SEBI's right to revive or initiate proceedings in the event of any misrepresentation, breach of settlement terms, or any discrepancy in payment.