Securities and Exchange Board of India (Sebi) found that the company had violated various norms through issuance of 'Secured Redeemable Debentures' to 133 investors.
According to Sebi, Megasys Medi issued the securities to over 50 persons which under the rules made it a public issue of securities and hence would require a compulsory listing on a recognised stock exchange, among others.
"Steps therefore, have to be taken in the instant matter to ensure only legitimate fund raising activities are carried on by Megasys Medi Life Ltd and no investors are defrauded," Sebi said in an order dated January 28.
The firm and its eight directors, including past directors have also been prohibited from capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
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Further, the Sebi order has asked the company and its directors not to divert any funds raised from public at large.
Megasys Medi has also been asked to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by the regulator, relating to the matter.
Ghosh had allegedly acted as an unregistered Debenture Trustee, Sebi said.
Sebi had initiated a probe against Megasys Medi after it received a complaint against the company in 2013.
As per the regulator's order, the company had issued and allotted debentures to a total of 133 investors during 2010-11, 2011-12 and 2012-13, respectively.