SEBI has imposed a Rs. 1 crore fine on Edelweiss Financial Services Ltd and two other merchant bankers, SBI Capital Markets Ltd and Axis Capital Ltd (formerly Enam Securities), for non-disclosure of important facts in the initial public offering prospectus of Electrosteel Steels Ltd in 2010.

Sebi has also imposed an additional Rs. 1 crore fine each on Electrosteel Steels and Electrosteel Castings Ltd. The reason is their failure to disclose that the in-principle approval for diversion of forest land for the company’s Kodolibad iron ore mine in Jharkhand was rejected by the environment ministry in 2008.