SEBI imposed a two-year prohibition on First Overseas Capital from accepting new mandates, alongside a ₹20 lakh penalty, citing violations tied to merchant-banker obligations. The order curtails the firm’s ability to participate in fresh IPO assignments while existing responsibilities must be honoured per regulations. The action follows inspections that flagged shortcomings in underwriting and compliance. Regulators emphasised safeguarding market integrity and investor interests by tightening accountability for intermediaries. Observers expect stricter due-diligence standards across lead managers and greater scrutiny of documentation, risk controls and net-worth adequacy through ongoing regulatory oversight.