Capital market regulator Securities and Exchange Board of India (SEBI) on Friday barred Kolkata-based agro firm Pious Agro Industries Ltd. (PAIL) from accessing the capital market and raising funds from investors through issue of securities.
The statement issued by SEBI said PAIL issued 15.76 lakh RPS (redeemable preference shares) amounting to Rs.1.57 crore during the fiscal years 2010-11 and 2011-12.
SEBI said that since allotment of shares from the company was a public issue, a compulsory listing on a recognised bourse was needed besides filing a prospectus which the company did not follow.
In the order, the regulator said: "PAIL shall forthwith cease to mobilise any fresh funds from investors through the offer of RPS or through the issuance of equity shares or any other securities, to the public or invite subscription, in any manner whatsoever, either directly or indirectly till further directions."
