Bombay High Court Considers Petition Alleging SEBI Negligence in WeWork India IPO

The Bombay High Court heard a petition challenging SEBI’s approval of WeWork India’s initial public offering (IPO).

The Petitioner alleged that SEBI ignored complaints regarding misleading disclosures and the concealment of material facts, including ongoing criminal proceedings under the Prevention of Money Laundering Act.

Thus, contending that SEBI breached its duty under Section 11(A) of the SEBI Act 1992, which authorises it to prohibit an issue to safeguard investors and maintain market integrity.

The plea sought to restrain WeWork from proceeding with the IPO until SEBI investigates the allegations and issues a reasoned order. The matter is currently pending before the Court for further consideration.

[Vinay Bansal Vs SEBI, WeWork]