Sebi orders MRS Agrotech, directors to refund investors' money

Markets regulator Sebi today ordered MRS Agrotech India and its seven directors to refund in three months the money they had raised from investors without complying with public issue norms.
Besides barring the firm and its directors from capital markets for four years, the Securities and Exchange Board of India (Sebi) also directed the company to refund the money along with an interest of 15 per cent per annum.
As per Sebi's interim order issued earlier, the firm had issued non convertible debentures (NCDs) between 2011 to 2013 to about 60 allottees, and had mobilised of Rs 8.38 lakh.
The securities were issued to over 50 people, which under the norms qualified as a public issue that requires compulsory listing on a recognised stock exchange. The firm was also required to file a prospectus, among others, which it failed to do.

The company and its directors are now "prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly, in whatsoever manner for a period of four years".
The company's debenture trustee -- MRS Debenture Trust -- has also been barred for four years for operating without registration from the regulator.
In case the firm fails to comply with the directions, Sebi would initiate appropriate action in accordance with the provisions of applicable laws, it said.