Market regulator Securities and Exchange Board of India (SEBI) in a recent move barred West Bengal-based Polaris Agro Industries Ltd. (PAIL) and its directors from raising public money besides restricting its access to capital markets.
"PAIL shall forthwith cease to mobilise funds from investors through the Offer of Redeemable Preference Shares or through the issuance of equity shares or any other securities, to the public or invite subscription, in any manner whatsoever, either directly or indirectly till further directions," the regulator said in an order passed against the agro company.
Besides ordering the firm and its directors to provide a full inventory of its assets and properties, SEBI has asked it not to divert any part of money or capital owned by the company.
SEBI alleged it received several complaints against the firm in question in October last year related to illegal funds mobilisation.
"PAIL is prima facie engaged in fund mobilising activity from the public, through the Offer of Redeemable Preference Shares and as a result of the aforesaid activity has violated the aforementioned provisions of the Companies Act, 1956," the order from SEBI said.
-- Indo-Asian News Service
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