Capital markets regulator Sebi has restrained Omisha Agri Industries (India) Ltd and its directors from raising money from investors through the issuance of securities for violating public issue norms.
The move follows Securities and Exchange Board of India (Sebi) receiving complaints regarding illegal mobilisation of funds by some companies including Omisha through the issuance of debentures.
Sebi found that Omisha raked in over Rs 33 lakh from 82 people through issuance of Non-Convertible Secured Redeemable Debentures (NCRDs) between 2012-13 and 2013-14.
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The company, through such activities, had allegedly violated various norms, Sebi said.
The regulator observed that allotment of NCRDs by the firm was a public issue, which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
"...Omisha is engaged in fund mobilising activity from the public, through the offer of NCRDs, and as a result of such activity has violated the provisions...Of the Companies Act," Sebi said in an interim order dated June 21.
Accordingly, Sebi has restrained the company and its directors from mobilising any fresh "funds from investors through the offer of NCRDs 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".
Further, the firm and its directors have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
They have been restrained from accessing the securities markets, Sebi said.
The capital market watchdog also asked the entities not to dispose any of the properties or assets acquired by that company without prior permission from the regulator as well as not to divert the funds raised from the public.
Also, Sebi has prohibited debenture trustees Omisha Debenture Trust (represented by trustee Sumana Garai)from continuing with its assignment in respect of NCRDs issue of the company. It also barred it from taking up any new assignment in a similar capacity till further directions.
This order "shall come into force with immediate effect and shall continue to be in force till further directions".
