Besides, barring the firms and their directors for four years, they have been asked to refund the money along with an interest of 15 per cent per annum.
A Sebi probe found that Vishwamitra International Infra Ltd (VIIL) had allotted over 41.5 lakh NCDs worth Rs 41.61 crore in 2012-13 to Vishwamitra India Tour & Hotels Ltd (its group company), which in turn transferred these NCDs to 83,109 investors, without complying with the Companies Act.
The securities were issued by the firms to more than 50 people, which qualified it as a public issue and required compulsory listing on recognised stock exchanges. They were also required to file a prospectus, among other things, which they failed to do.
"I find that in respect of the issuances of NCDs by VIIL during the financial year 2012-13 and the subsequent transfer of the NCDs by Vishwamitra India Tour & Hotels Ltd (VITHL), the Vishwamitra entities have failed to comply with the provisions of Companies Act", Sebi said in an order today.