Sebi orders Purusattam Infotech to refund investors money

Markets regulator Sebi has ordered Purusattam Infotech Industries to refund the money it had illegally raised from people, along with interest.
In addition, the company and its directors have been barred from the securities market for four years.
The Securities and Exchange Board of India (Sebi) found that Purusattam Infotech had issued cumulative redeemable preference shares to over 2,000 individuals and had mobilised funds amounting to around Rs 3 crore.
Since the shares were allotted to more than 50 people, the company had, 'prima facie', violated the public issue norms, Sebi said.
Under the rules, a public issue requires compulsory listing on a recognised stock exchange. The company was also required to file its prospectus, which it failed to do.

In its order, Sebi has asked the company and its directors -- Prasenjit Pal, Moumita Paul, Gita Pal, Nirmal Midya and Animesh Biswas -- to refund money collected from the investors with an interest of 15 per cent per annum compounded at half yearly intervals.

Besides, they have been directed to issue public notice, in all editions of two National dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons within 15 days.
They have been "restrained and prohibited from buying, selling or otherwise dealing in the securities market, till the expiry of four years from the date of completion of refunds to investors."

After completing the repayments, the firm would have to file a report of such completion with Sebi within three months.
In case Purusattam Infotech fails to comply with the order, Sebi would make a reference to the state government/ local police to register a civil/criminal case against the company and its directors.
It would also make a reference to Ministry of Corporate Affairs to initiate the process of winding up the firm.