The Confederation of All India Traders wrote to the Securities and Exchange Board of India urging the marking regulator not to allow e-pharmacy firm PharmEasy's initial public offering.
"The business model of 'PharmEasy' which is controlled by 'API Holdings' is entirely based on gross illegality," the traders' body said in a statement.
Citing a Delhi High Court order passed in 2018, the traders' body said that sale of medicines over the internet is not allowed.
API Holdings, the parent company of the e-pharmacy firm PharmEasy has reportedly filed the 'Draft Red Herring Prospectus' to the market regulator recently.
"We believe that investor wealth worth billions is at stake if this IPO is approved by SEBI. We are sure that it will receive your kind and immediate attention," the statement added.
In addition, the traders' body alleged that the Pharmeasy has mentioned Thyrocare as its subsidiary in the DRHP submitted to the SEBI, without any order from the Competition Commission of India, whcih prevents activities that potentially may have an adverse effect on business.
The South Chemists and Distributors Association had also submitted a letter to the SEBI with requests on the same line.