India’s securities regulator has issued a ban on Nirman Agri Genetics and its promoter from market participation after uncovering significant diversion of IPO proceeds. The investigation revealed nearly full misallocation of IPO funds to shell entities linked to the promoter, along with forged licenses and suspicious transactions. The ban marks decisive regulatory action aimed at safeguarding investor trust and preventing misuse in SME and small-scale listings. Market watchers expect stricter scrutiny going forward.