Sebi directs Shah Builders to refund money to investors

The realty company raised money through issue of shares with a promise of coming out with an IPO

Capital market regulator Securities and Exchange Board of India (Sebi) has directed Navi Mumbai-based Shah Group Builders to return money collected from investors through issue of equity shares. The regulator also has barred the company and its directors Nalin V Shah, Nirav N Shah and Neelam N Shah from accessing the securities market or issuing any advertisement for soliciting money from public.

As per a complaint made to Sebi, Shah Builders raised money through issue of shares with a promise of coming out with an initial public offering. The company has allegedly defaulted in payment of agreed interest and has not refunded the principal amount.