)
Pulling the plug on illegal mobilisation of funds by Sunplant Constructions, Sebi today barred the company and its directors from raising money by issuing securities.
The Securities and Exchange Board of India (Sebi) said Sunplant Constructions raised a little over Rs 24 crore from over 3,200 investors through redeemable preference shares (RPS).
Sebi observed that issue was made to over 50 persons which under the rules made it a public issue of debt securities and hence would require a compulsory listing on a recognised stock exchange. The company was also required to file a prospectus which it failed to do.
"...Sunplant Constructions is prima facie engaged in fund mobilising activity from the public, through the issue of RPS," Sebi said in an order adding the activity has violated the provisions of Companies Act.
Consequently, the regulator has directed the company and its directors--Awdhesh Kumar Singh, Satish Kumar Singh and Rituraj Pradhan--not to mobilise funds from investors through the issue of redeemable preference shares or any other securities to the public.
Sebi also directed Sunplant Constructions, to provide a full inventory of all assets and properties of the company. The company has been barred from disposing of any of its properties without prior permission from Sebi.
Besides, it cannot divert any funds raised from the public which are kept in bank account(s) and/or in the custody of Sunplant Constructions.
The directions would take effect immediately and would be in force until further orders.
The regulator received a communication, in March this year, from Ministry of Corporate Affairs (MCA), which was sent sent by Nishikant Dubey, Member of Parliament.
The letter said that certain companies including Sunplant Constructions were collecting monies from the public through issue of debentures and redeemable preference shares allegedly in violation of the Companies Act.
Earlier this week, Sebi had prohibited Sunplant Forgings Ltd and its directors from raising money by issuing securities.
