 "The logo of the Securities and Exchange Board of India (SEBI), India's market regulator, is seen on the facade of its head office building in Mumbai")
Markets watchdog Sebi today directed Yash Dream Real Estate Ltd and its directors to refund, within three months, Rs 126 crore collected from investors by issuing convertible bonds along with interest.
Besides barring the firms for three years, the Securities and Exchange Board of India (Sebi) has ordered them to refund the money along with 15 per cent annual interest.
A probe conducted by Sebi found that Yash mobilised funds to the tune of about Rs 126 crore by series of issuances of unsecured optionally fully convertible bonds (OFCBs) between 2008-09 to 2014-15 without complying with the public issue norms. The company claimed to have refunded over Rs 59.36 crore to the investors.
Since the bonds were issued to over 50 people, the issuance qualified as a public issue that requires compulsory listing on the recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
In an order passed today, Sebi has ordered Yash Dream and its promoters/directors --Amit Kumar Shrivastava, Neeta Shrivastava, Nitin Shrivastava, Reebha Shrivastava, Sindhu Singadhe, Deepak Singare and Pooja Tandan -- to jointly refund the money, within three months, collected through issuances of OFCBs, with interest of 15 per cent per annum.
They have been asked to show documentary evidence, within 15 days to Sebi, that they repaid over Rs 59.36 crore to investors.
Also, 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 on contact persons within 15 days.
Besides, they have been further "prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly, in whatsoever manner for a period of three years or till the date of refund of money.
