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Corporate Capital Ventures Limited, a Delhi-based merchant banking firm, is currently under scrutiny by the Securities and Exchange Board of India (SEBI) for alleged breaches of merchant banking regulations related to its management of several SME IPOs. The firm has been issued a notice by SEBI, which also names two of its directors, Kulbhushan Parashar and Harpreet Kaur, among other entities.
The investigation was initiated following an anonymous complaint accusing Kulbhushan Parashar of using relatives to purchase shares in companies before they went public. SEBI’s probe covered the period from August 2022 to June 2024, during which Corporate Capital Ventures managed six SME IPOs: Oriana Power, Annapurna Swadisht, Droneacharya Aerial Innovations, Crayons Advertising, Creative Graphics Solutions India, and Rocking Deals Circular Economy.
The complaint alleges that relatives of Kulbhushan Parashar were allocated 25,000 equity shares and 25,000 bonus shares of Oriana Power, with allotments made to Jagdish Kumar Prasad, who is listed as an immediate relative of Parashar in the IPO prospectus for Rocking Deals. Additionally, Unizon Fintech Private Limited, where Parashar is a director and stakeholder, reportedly subscribed to IPOs of Creative Graphics and Rocking Deals, both managed by Corporate Capital Ventures.
Despite these allegations, Corporate Capital Ventures has denied receiving any SEBI notice, stating in response to queries that no show-cause notice has been issued. SEBI did not respond to inquiries before the publication of this article.
The investigation into Corporate Capital Ventures highlights ongoing concerns about the SME IPO segment, which has faced increased regulatory attention due to high oversubscription rates and substantial listing gains. SEBI Chairperson Madhabi Puri Buch noted signs of manipulation in the SME sector and indicated that additional regulatory measures are being considered. The National Stock Exchange (NSE) has also announced a cap on issue prices for SME IPOs during special pre-open sessions.