Mumbai: Capital markets regulator Sebi has prohibited four companies from raising money from public with immediate effect.
Besides, the companies and their respective directors have been restrained from the securities market.
The Securities and Exchange Board of India (Sebi) said that these companies collectively garnered nearly Rs 4 crore from more than 12,000 investors through issuance of securities and prima facie violated various provisions of the Companies Act.
The firms -- Real Agro Industries & Services, Hum Projects, KKDIL Nidhi and Infocare Infra -- issued securities to over 50 persons each, which under the rules made it a public issue. Hence, it would require a compulsory listing on a recognised stock exchange. Besides, it was also required to file a prospectus, among others, which they failed to do.
Accordingly, Sebi, in four separate orders, prohibited these firms from mobilising any fresh funds from investors through the offer of redeemable preference shares (RPS), non-convertible debentures (NCDs), equity shares or any other securities to the public till further directions.
The companies and their respective directors have been barred from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
Further, the Sebi order has asked these companies and their directors not to divert any funds raised from public at large.
These companies have also been asked to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by Sebi.
These directions would come into force with immediate effect.
