Sebi bars MPA Agro from raising funds via securities

Pulling the plug on yet another illicit investment scheme, market regulator Sebi today restrained MPA Agro Animals Projects Ltd from raising funds from the public with immediate effect.
Sebi also barred the company's directors from the capital markets.
According to Sebi, the firm issued equity shares to 152 persons and mobilised funds to the tune of Rs 22.50 lakh.
Such activities were prima facie in violation of various norms, the Securities and Exchange Board of India said in an order.
The capital market regulator noted that as the issue by company was made to 50 or more persons, it was under a legal obligation to get listed on a stock exchange. Among others, it was also mandatory for the firm to bring out a prospectus with respect to the public issue.

"I note that the company had commenced allotment of equity shares allegedly to the public since March 2010. It can reasonably be inferred that the directors of the company... were involved in the mobilisation of public funds through the issue of equity shares without complying with the applicable law," Sebi Whole Time Member Prashant Saran said in an order.

Accordingly, Sebi said that MPA Agro Animals Projects and its promoters and directors are "restrained from mobilising funds through the issue of equity shares or through any other form of securities, to the public and/ or invite subscription, in any manner whatsoever, either directly or indirectly till further directions."

The company and its officials have also been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
Further, the Sebi order has asked them not to divert or dispose any funds raised from public at large including assets brought from such money.
The company would also have to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by Sebi in the matter.
These directions "shall come into force with immediate effect".
Among the barred promoters and directors included Pintu Sen, Adhish Halder, Tapan Pramanik, Krishnadhan Das, Surajit Paul and Monoj Kumar Saha.