Sebi today barred Shine India Agro Industries and 10 individuals, including company promoters and directors, from the securities market for at least four years for collecting money illegally from the public.
The market regulator in an order also directed the firm and its five past and present directors -- Gurupada Das, Sajahan Midya, Niamat Ali, Kabil Patra and Dulal Senapati -- to refund the money collected from investors along with an annual interest of 15 per cent.
Five promoters -- Suparna Das, Irin Parvin, Basudev Ghosh, Ujjal Mandal and Kobil Patra -- have been barred for four years from today while the directors would face ban till completion of four years from the date of complete refunds made to the investors concerned, according to the order.
Shine India had issued and allotted redeemable preference shares (RPS) to at least 586 investors during the financial years 2011-12 and 2012-13 and raised at least Rs 1.03 crore, the Sebi order said.
Since the shares were issued to more than 50 people, the offer of RPS qualified to be a public issue and required compulsory listing of the securities on a recognised stock exchange. However, the company did not comply with the provision.
Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do.
In a separate order, the regulator directed a former director of Mangalam Agro Products to refund the money raised from investors without complying with the public issue norms.
The former director, Runa Mazumder, has been banned from the securities market till the expiry of four years from the date of completion of refunds to investors.
Mangalam Agro Products had issued and allotted secured redeemable non-convertible debentures (NCDs) to at least 4,820 investors during the financial year 2011-12 and raised at least an amount of Rs 11 crore without complying with public issue norms.
In an order passed in April 2015, Sebi had asked the firm and its three other directors to refund the money.
Following the April 2015 order, the regulator noticed that Runa Mazumder, Nabanita Sikder and Runa Sikder were former directors of Mangalam Agro Products and through an interim order in November 2015, restrained them from accessing the markets till further directions.
In the fresh order, noting that Nabanita Sikder and Runa Sikder joined the firm subsequent to the issue of NCDs, the regulator banned them from the securities market for a period of four years.
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