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This article is more than 1 month old.

Traders' body approaches SEBI against PharmEasy IPO plans

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In a written representation, the traders' body has urged the market regulator to not allow the e-pharmacy company to go public. CAIT cited a 2018 Delhi High Court order prohibiting the sale of medicines online, and also pointed out alleged irregularities in the filing of the Draft Red Herring Prospectus (DRHP) of API Holdings Ltd -- PharmEasy's parent company.

Traders' body approaches SEBI against PharmEasy IPO plans
Traders' body Confederation of All India Traders (CAIT) on Friday approached the Securities and Exchange Board of India (SEBI), urging the market regulator to not to allow e-pharmacy player PharmEasy to go ahead with plans for an initial public offering (IPO).
In a written representation, CAIT asked SEBI chairperson Ajay Tyagi “to reject the Draft Red Herring Prospectus (DRHP) of API Holdings Ltd, which owns PharmEasy".
CAIT cited a 2018 Delhi High Court order prohibiting the sale of medicines online and said, “We
CAIT is an apex body of traders associations from across India. 
CAIT further noted in the representation that “sale of medicines still continues till this date against the order by the High Court. Contempt of court proceedings are still pending against all parties in the said case. The Ministry of Health & Family Welfare, Government of India, in a sworn in affidavit before the High Court of Delhi, has admitted that: online sale of medicines is presently under consideration of the Government; Drugs and Cosmetics Act, 1940, and Rules 1945 have no such provision."
CAIT National Secretary General Praveen Khandelwal said it would be inappropriate for SEBI to allow PharmEasy to go public. "API Holdings had proposed to acquire pathology lab Thyrocare a few months ago. However, no order has been passed by the Competition Commission of India (CCI) in this regard. Despite the lack of a CCI order, API Holdings mentions Thyrocare as a  subsidiary in the DRHP submitted to SEBI. SCDA has also sent a letter to CCI seeking clarification but even after several reminders, have received no response," Khandelwal.
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