Taking strict action against illegal money pooling schemes, Sebi today barred three firms -- Idol India Projects, Shine India Infra Project and Sunheaven Agro India -- and their directors from securities markets.
According to Sebi, Shine India had mobilised Rs 11.34 lakh from 86 investors, Idol India had garnered Rs 39.87 lakh from 386 individuals and Sunheaven Agro India had raised Rs 11 crore from 7,772 people.
These funds were raked in by issuing Redeemable Preference Shares to investors between 2009-10 and 2012-13.
Since the shares were issued to over 50 people by each company, the issuance qualified as a public issue that requires compulsory listing on a recognised stock exchange.
The companies were also required to file a prospectus, among others, which they failed to do.
Accordingly, Sebi, in three separate orders, barred Idol India and Shine India and its directors from the securities market till further directions, while Sunheaven Agro and its directors have been prohibited from the markets for four years.
Idol India and Shine India have been restrained from mobilising any fresh funds from investors through the issuance of securities to the public till further directions.
Separately, the markets watchdog has asked Sunheaven Agro and its directors to refund the money collected from investors along with 15 per cent annual interest.
Further, Sebi has barred the company and its directors from the securities markets for four years and said that the ban will continue till completion of refunds to investors.
In case Sunheaven Agro fails to comply with Sebi's order, the regulator would make a reference to the state government/ local police to register a civil/ criminal case against the company and its directors for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds.
It would also make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the firm.
