Sebi bans Ramel Pharma from raising funds from investors

Markets regulator Sebi today barred Ramel Pharma from mobilising fresh funds from the public through the issuance of securities till further directions.
The Securities and Exchange Board of India (Sebi) found that the companies had raised funds by issuing redeemable preference shares (RPS) to 4,984 people.
Since these shares were issued to more than 50 investors by the company, this qualified to be a public issue, which requires compulsory listing on recognised stock exchanges.
Among others, the firm was also required to file their prospectus, which it failed to do.
"There is no other alternative but to take recourse through an interim action against Ramel Pharma and its directors, for preventing that company from further carrying on with its fund mobilising activity under the Offer of RPS," Sebi said in an order.

Accordingly, Sebi said: "Ramel Pharma shall not mobilise any fresh funds from investors through the Offer of RPS or through the issuance of shares or any other securities to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions."

Besides, the markets watchdog has prohibited the company and its directors from accessing the securities market till further orders.
It has asked the company and its directors not to dispose of any of the properties or alienate or encumber any of the assets owned/acquired by the firm through RPS without prior permission from the regulator.

The directions shall take "effect immediately and shall be in force until further orders", Sebi said.