Intimation under Regulation 30 of SEBI (LODR) Regulations, 2015 - Revocation Order
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SEBI has vacated the interim order it had passed on May 14, 2025 against Varyaa Creations Limited, its promoters/directors, and lead manager Inventure Merchant Banking Services. The original order had frozen promoter shareholdings and barred the company from the securities market after ~70% (₹14 crore of ₹20.10 crore raised in its April 2024 SME IPO) was transferred on listing day to three entities — Maruti Corporation, Kaveri Corporation, and Overseas Metal and Alloys — and quickly withdrawn in cash or moved onward. The company showed bank statements, independently verified by SEBI, confirming that all ₹14 crore was returned by the three entities (₹9 crore before SEBI even began its probe), arguing the funds were advances for gold/jewellery inventory purchase and that Inventure's letter to HDFC Bank mislabelled the transfers as 'issue-related expenses' due to a clerical formatting error. SEBI accepted the rebuttal at this stage but stressed that a detailed investigation continues on multiple flagged concerns, including the authenticity of supplier communications, the business nature of Kaveri (registered for agriculture), Inventure's unusual escrow arrangement, and the actual utilisation of the ₹14 crore redeployed for inventory.
Positive near-term for shareholders — the market-access ban and freeze on promoter shareholdings have been lifted, removing the immediate overhang on the stock. However, the underlying SEBI investigation remains open and could still lead to enforcement action if unresolved concerns about fund use and supplier dealings are validated.