By Deepankar Malviya

Copyright timesnownews

Days before launch of WeWork IPO, it finds itself before the Bombay High Court along with Securities Exchange Board of India. An investor, Vinay Bansal, has filed a petition before the Bombay High Court alleging that Draft Red Herring Prospectus (DRHP) contains material non disclosures and misleading statements including the concealment of a criminal chargesheet filed against the promoters for serious economic offences. The plea sought a direction to SEBI to dispose the complaint filed by Bansal, passing a reasoned and speaking order within a time-bound manner. It also sought direction to SEBI to investigate the allegations and till the writ petition is disposed of the listing of securities be kept in abeyance. Bansal had approached SEBI with a complaint meticulously detailing severe deficiencies in the DRHP (which continue to reflect in the RHP as well) of WeWork including misleading disclosures about brand ownership, a precarious financial position, and a shocking concealment of the statusand consequences of criminal proceedingsinvolving grave economic offences against its key promoters. The petition further claims that Section 11A of SEBI Act grants SEBI the explicit power to prohibit an issue for investor protection. “In case SEBI finds that an offer document contains misleading statements, conceals material facts, or is structured in a manner that could harm investors, it can invoke its powers under Section 11A of the SEBI Act to prevent the issue from proceeding to the market”, the petition said. It was also submitted in the petition that despite filing a complaint before SEBI, it has neither decided the issue nor passed a reasoned communication which violates the duty to pass a speaking order. When Times Now approached WeWork, they refrained from commenting on the matter as the matter is before court. “Any matter that is subjudice will be determined as per the course of law”, they said. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.