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Sebi bans Nava Diganta, 9 directors from markets for at least 4 years

The present directors of Nava Diganta are Kartikeya Parida, Pradeep Kumar Pattnaik and Anjan Kumar Baliyarsingh

Sebi
Sebi. (Photo: Kamlesh Pednekar)
Press Trust of India New Delhi
Last Updated : Jul 24 2018 | 5:37 PM IST

Sebi has banned Nava Diganta Capital Services as also its nine current and former directors from the securities market for at least four years for illegally raising money, and directed them to refund it to the investors.

In an order dated July 23, Sebi said the firm had issued and allotted redeemable preference shares (RPS) to 874 investors during the financial years 2011-12, 2012-13 and 2013-14 and raised Rs 22.4 million. The company had also made an offer of secured redeemable non-convertible debentures (NCD) during the financial year 2011-12 and raised Rs 27.7 million.

Noting that the offer of RPS and NCD was a public issue, the Securities and Exchange Board of India (Sebi) said that the company was mandated to comply with the relevant norms.

Since the offer of RPS and NCD was a public issue, the securities had to be compulsorily listed on a recognised stock exchange as mandated under the Companies Act. However, Nava Diganta Capital Services did not comply with the provision.

Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC), which it failed to do.

The regulator said that Nava Diganta has engaged in fund mobilising activity from the public through the offer of RPS and NCD and has contravened the provisions of the Companies Act.

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Accordingly, the regulator has ordered the firm and the directors to refund the money to the investors with an annual interest of 15 per cent.

The present directors of Nava Diganta are Kartikeya Parida, Pradeep Kumar Pattnaik and Anjan Kumar Baliyarsingh.

Among the former directors are Harapriya Jena, Smita Patra, Ramachandra Hansdah, Nirupama Sahoo, Hitesh Kumar Bagartti and Subarna Naik.

Following the completion of repayment, the entities have to file a report with the Securities and Exchange Board of India (Sebi) certified by two independent peer reviewed chartered accountants who are in the panel of any public authority or public institution.

Besides, the entities have been are directed not to, directly or indirectly, access the securities market till the expiry of four years from the date of completion of refunds to investors.

Also, the directors have been restrained from associating themselves with any listed public company from the date of the Sebi order till the expiry of four years from the date of completion of refunds.

 

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First Published: Jul 24 2018 | 5:34 PM IST

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