Sebi bans Aryan Agro from market for illegally raising money

Sebi today barred Aryan Agro Projects India and its directors from the capital market after it found that the company had illegally raised funds from investors.
They have also been banned from raising funds from the public till further directions.
The Securities and Exchange Board of India (Sebi) found that Aryan Agro mobilised funds by issuing non-convertible debentures (NCDs) to 87 investors during 2011-12 and 2012-13 without complying with the 'public issue' norms.
Since these debentures were issued to more than 50 people, the issuance qualified as a public issue that requires compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which the company failed to do.

Accordingly, Sebi said, the company and its present as well as former directors have been restrained from the capital market.
They have been barred from soliciting money from the public, Sebi said in an interim order.
They have been restrained from mobilising "fresh funds from investors through NCDs or through the issuance of equity shares or any other securities to the public and/or invite subscription in any manner, whatsoever either directly or indirectly till further directions".
The banned present directors are Vikash Jha, Rakesh Raushan, Birendra Thakur and Manoj Chouhan and the former directors who also faced the heat are Abadh Kumar Singh, Sheonath Sahni, Uttam Das, Robin Ojha, Anil Kumar Mishra and Shailesh Kumar Mishra.