Sebi has directed Bishal Abasan India Ltd (BAIL) and two directors to refund more than Rs 3.64 crore that was illegally raised from investors.
Besides, the two individuals -- Chandan Shah and Ratan Chowdhury -- have been barred from the securities market for four years.
It was found that the company raised Rs 2.75 crore by allotting Redeemable Preference Shares (RPS) between 2011-12 apart from mopping up Rs 89 crore through issuance of Non-Convertible Debentures (NCDs) between 2012-14. Both fund raising activities were done without being compliant with market norms and the Companies Act.
In a 25-page order, Sebi said the total amount of Rs 3.64 crore along with 15 per cent annual interest has to be refunded.
"Ratan Chowdhury, Chandan Shah, in their personal capacity are directed to provide an updated full inventory of all their assets and properties and details of all bank accounts, demat accounts and holdings of mutual funds/shares/securities, if held in physical form and demat form of their own," the order, dated February 5, said.
The regulator has also directed them to file a report on completion of refund with it, within three months.
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In the case, Sebi has also barred two other former directors of the company -- Sujit Acharjee and Prabir Chowdhury -- for four years. However, the direction against them would come into effect after 365 days subject to certain conditions.
Both have alleged that they were fraudulently inducted as directors of the firm. Therefore, Sebi has granted them time to obtain appropriate order from the competent authority.
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