Mumbai: Clamping down on illegal money pooling activities, capital markets regulator SEBI Thursday barred eight companies including URO Group firms from raising funds from the public with immediate effect.
The restrained firms are Goldmine Food Products, Adarsh Wealth Ventures, Astha Green Energy Ventures India (earlier known as JKAR Energy Ventures) and five URO Group firms--URO Walkers, URO Infra Reality India, URO Infotech, URO Lifecare and URO Hygienic Foods.
Besides, the companies and their respective directors have been restrained from the securities market.
Securities and Exchange Board of India (SEBI) said that these companies collectively garnered at least Rs 130 crore from over 8,000 investors through issuance of securities and prima facie violated various provisions of the Companies Act.
These firms issued shares to over 50 persons each, which under the rules made it a public issue of securities. 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 eight separate orders, prohibited these firms from mobilising any fresh funds from investors through the offer of redeemable preference shares, non-convertible debentures, equity shares or any other securities to the public till further directions.
The companies and their respective directors have been prohibited 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.
In a separate order, SEBI has prohibited SCL Steel Corporation from mobilising money from public.
Besides, the regulator barred the Madhya Pradesh-based firm and its directors from accessing the securities markets.
SCL Steel Corporation garnered Rs 10.77 crore by allotting non-convertible debentures to 10,945 investors and violated various provisions of Companies Act.
