New Delhi: The Securities Appellate Tribunal asked Sebi to pass final orders within two weeks in two difference cases of IPO irregularities, as more than seven months have lapsed since interim penalties were imposed by the regulator in both the matters.

While one case is related to investigations by the Securities and Exchange Board of India (Sebi) in the initial public offer (IPO) of RDB Rasayans Limited, the other relates to alleged irregularities in the IPO and trading of the shares of PG Electroplast Limited.

Sebi's investigations into RDB Rasayans IPO is primarily focused on disclosures made in the offer documents, the bidding pattern, trading on first day of listing and utilisation of IPO proceeds.

During its probe, Sebi prima facie found lack of due diligence on the part of RDB Rasayan IPO's merchant bankers, Chartered Capital and Investment Limited.

Consequently, Sebi through its exparte ad-interim order dated December 28, 2011, restrained the merchant bankers from taking up any new assignment or involvement in any new public offer from the securities market till further orders.

The merchant bankers later approached SAT, stating that they have amply demonstrated that there was no merit in allegations against them and Sebi's action of not passing a final order despite the lapse of more than seven months "calls for setting aside the impugned order".

The appellants told the Tribunal that they filed a reply to Sebi's show-cause notice on January 14, 2012, after which a personal hearing was granted on March 16, 2012 and written submissions were filed on March 20, 2012.

"Although a period of more than five months have lapsed since grant of personal hearing, the respondent (Sebi) has not passed any order thereafter and the appellants are restrained from carrying out its activities under the exparte ad-interim order," the SAT order observed.

Sebi's counsel told the Tribunal that the regulator is still looking into the matter, but it would pass necessary order after considering reply of the appellants within a period of two weeks.

While observing that it might not be appropriate for it to intervene in the matter at this stage, as the case was still at the investigation stage, SAT directed Sebi to complete the investigation within two weeks.

"In case the Board is not able to pass appropriate order within the stipulated time, the ex-parte ad-interim order passed against the appellants shall stand vacated," SAT order said, while disposing of the appeal.