Having found to flouted norms by raising Rs 4.95 crore from investors by way of issuing non-convertible debentures (NCDs), market regulator Sebi today directed Idol India Infrastructures Ltd, its promoters and directors to refund the outstanding money.
The Securities and Exchange Board of India (Sebi) had found that the company had raised Rs 4.95 crore from over 10,000 investors by way of issuing NCDs by way of private placement without its approval.
However, the company claimed to have repaid a sum of Rs 4.41 crore along with interest to its investors.
In an order issued today, Sebi directed Idol India Infrastructures, its promoter and directors to "refund the money collected by the company through the issuance of NCDs...With returns that were promised by the company to its investors "
In cases of delay in making the repayments, the company, its promoters and directors, would return the money collected from its investors with an interest of 15 per cent per annum compounded at half yearly intervals, from the date of this order till the date of actual payment, Sebi said.
The regulator said that repayments as claimed by the company, would need to be certified by Chartered Accountants.
Sebi asked Idol India Infrastructures Ltd to issue public notice, in all editions of two national dailies and in one local newspaper detailing the modalities for refund, including details on contact persons including names, addresses and contact details, within fifteen days from today.
Also, Sebi prohibited India Infrastructures Ltd and its promoters and directors from accessing the securities market for the purposes of raising funds with immediate effect.
"This restraint shall continue be in force for a further period of two years on completion of the repayments (to its investors), made to the satisfaction of Sebi," the regulator said.
