Sebi asks Sunplant Business' ex-directors to repay investors

Markets regulator Sebi today asked Sunplant Business' former directors -- Girija Shankar Kumar and Awdhesh Kumar Singh -- to refund the money they had illegally raised from investors.
The order comes after Sebi found that Kumar and Singh, the directors in Sunplant Business from April 29, 2002 to April 30, 2011 were engaged in fund mobilising activity from the public and have violated the provisions of Companies Act.
The regulator, in its order in June 2015, had noted that Sunplant Business and its directors made a public issue of Redeemable Preference Shares (RPS) between 2005-06 and 2007-08 without complying with the public issue norms mandated under the Companies Act.

Accordingly, Sebi ordered the firm and its directors to repay the money to investors. However, the direction was not issued against Kumar and Singh.
In an order passed today, the regulator said Kumar and Singh "shall jointly and severally along with the company and others as ordered vide Sebi order dated June 3, 2015, forthwith refund the money collected by the company through the issuance of RPS to the investors...With an interest of 15 per cent per annum."
Besides, they have been barred from the securities markets for four years and the ban will continue till the completion of refund to investors.

In case they failed to comply with these directives, Sebi would make a reference to state government or local police to register a case against the company for fraud.
In an separate order, Sunplant Forgings' former director Ameet Singh was also asked to repay investors money along with interest. He has also been barred from the securities markets "till the expiry of four years from the date of completion of refunds to investors."
Singh was a director in the company during January 15, 2011 to February 28, 2012.