Infrax Renewable Limited appoints Shreni Shares amid probe

Infrax Renewable Limited has appointed Shreni Shares Limited as market maker for a minimum three-year period after listing, while disclosing that the Securities and Exchange Board of India, or SEBI, has an ongoing investigation concerning Shreni Shares. The arrangement requires two-way quotes for at least 75% of each trading day.

Why did Infrax Renewable appoint Shreni Shares as market maker?

Infrax Renewable appointed Shreni Shares because Regulation 261 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, or SEBI ICDR Regulations, requires compulsory market making for an SME offer for at least three years from listing. Infrax Renewable, its lead manager and Shreni Shares entered their market-making agreement on August 13, 2026.

Shreni Shares is registered with BSE and holds SEBI registration number INZ000268538, according to the prospectus. Its agreed role is to receive or deliver Infrax Renewable equity shares in the market-making process for three years from listing, or for any revised period subsequently notified under amendments to the SEBI ICDR Regulations.

The appointment is connected to a reservation of 1,99,200 equity shares for the market maker. Those shares are included in the 39,31,200 equity shares underwritten for the offer by Smart Horizon Capital Advisors Private Limited, with the disclosed underwriting amount of Rs 40.88 crore and an underwriting agreement dated August 13, 2026.

What does the SEBI investigation disclosure say?

The prospectus says an SEBI investigation concerning Shreni Shares is ongoing pursuant to an ex-parte interim order dated July 9, 2026. An ex-parte order is an interim order issued without a hearing involving all affected parties at that stage of a proceeding.

The supplied prospectus does not state the conduct being investigated, any final finding, penalty or timetable for the matter under the July 9, 2026 order. It identifies Shreni Shares as the market maker despite that disclosure and states that the intermediary is registered with BSE to meet market-making obligations.

The disclosed investigation concerns the intermediary performing a continuing post-listing function rather than the underwriter's one-time allocation role. Shreni Shares must quote prices, guarantee execution at its displayed price and quantity, and manage its inventory during the three-year compulsory period, subject to exchange rules and any applicable SEBI or BSE action.

How will Shreni Shares provide liquidity after listing?

Shreni Shares must provide two-way quotes, meaning both buy and sell quotations, for at least 75% of the time in a trading day. BSE will monitor that requirement, while the difference between the bid and offer, known as the spread, cannot exceed 10% or another limit BSE specifies from time to time.

The minimum quoted depth is Rs 1 lakh under the agreement. An investor holding Infrax Renewable shares worth less than Rs 1 lakh may offer the entire holding to Shreni Shares in one lot, provided the investor gives the required declaration to the selling broker.

Infrax Renewable shares will enter a special pre-open session on the first day of listing before normal equity-market trading begins. The prospectus also provides for trade-for-trade settlement for the first 10 days from commencement of trading, meaning delivery is required for each transaction in that segment.

When can Shreni Shares stop quoting Infrax Renewable shares?

Shreni Shares may receive an exemption from quoting after three months if its holding in Infrax Renewable reaches 25%, under the stated agreement conditions. The prospectus says the threshold includes the 5% of equity shares intended to be allotted under the offer, while shares allotted above the 25% level are excluded from the threshold calculation.

The 25% exemption does not permanently end the quoting duty. Once Shreni Shares' holding falls to 24%, it must resume two-way quotes; by contrast, the agreement states no downside exemption if inventory is exhausted through market making, although BSE may inform SEBI after verification.

Shreni Shares may also temporarily or fully withdraw in special circumstances, including system problems. Reasons within its control require advance BSE approval, while force majeure applies to non-controllable events, and BSE has final authority under the agreement to determine whether a reason is controllable.

What happens if the market-making agreement ends early?

Infrax Renewable must appoint a replacement market maker before Shreni Shares is released if the agreement ends before the compulsory three-year period. Shreni Shares may terminate with one month's notice or on mutually acceptable terms, but Infrax Renewable remains responsible for compliance with Regulation 261 during that notice period.

Infrax Renewable may appoint a replacement or an additional market maker, provided the total number of designated market makers does not exceed five. The prospectus names Shreni Shares in the August 13, 2026 agreement but does not identify an alternative market maker.

BSE may apply mark-to-market, value-at-risk, or VaR, extreme-loss, special and base-minimum-capital margins to market makers, as applicable on its main board. If a market maker misses the 75% quote-presence requirement or does not provide required liquidity, BSE may levy monetary penalties or suspend market-making activities or trading membership.

The agreement also sets rules for price controls after listing. If an equilibrium price is discovered in the call auction, the normal-session price band is 5% of that price; if no equilibrium price is discovered, the band is 5% of the offer price, with the trade-for-trade segment applying for the initial 10 trading days.

Conclusion

Infrax Renewable has disclosed a market-making structure that places Shreni Shares under a minimum three-year quoting obligation while an SEBI investigation concerning that intermediary remains ongoing under the July 9, 2026 ex-parte interim order. The arrangement requires quote presence, execution commitments, inventory management and BSE supervision, but it does not guarantee a particular trading volume or price.

The stated plan if Shreni Shares exits is for Infrax Renewable to appoint a replacement during the one-month notice period and maintain no more than five market makers. The unresolved matter is whether the ongoing SEBI investigation or any subsequent exchange or regulatory action affects Shreni Shares' ability to continue performing the role.