Sebi prohibits Rista Fisheries from raising funds

Cracking the whip on yet another illegal money pooling activity, Sebi today restrained Kolkata-based Rista Fisheries and Infrastructure from raising funds while also barring the firm and its directors from stock markets with immediate effect.
According to Sebi's findings, the firm allegedly raised funds from over 500 investors through offer of 'Redeemable Preference Shares (RPS)'.
Such activities were prima facie in violation of various norms, Securities and Exchange Board of India (Sebi) said in a recently released order.
The capital market regulator noted that as the issue by companies was made to 50 or more persons, the company was under a legal obligation to get listed on a stock exchange, among others.

Consequently, Sebi said that "there is no other alternative but to take recourse through an interim action against Rista Fisheries and Infrastructure and its directors, for preventing that company from further carrying on with its fund mobilising activity under the offer of redeemable preference shares".
Sebi ruled that Rista Fisheries "shall forthwith cease to mobilise funds from investors through the offer of Redeemable Preference Shares or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions".

Rista Fisheries as well as its past and present directors have also been prohibited from the capital markets and 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.
Sebi had received a complaint on August 8, 2014, alleging mobilisation of funds by Rista Fisheries.