Markets watchdog Sebi today barred Vishwamitra International Infra and its directors from raising fresh money from investors after finding that the company had unauthorisedly raised over Rs 100 crore from people.
They have also been banned from raising funds from the public till further directions.
Securities and Exchange Board of India (Sebi) found that the company had raised Rs 106.75 crore illegally through the issuance of Non-Convertible Redeemable Secured Debentures (NCDs) as on March 31, 2014 from more than 83,000 investors.
The regulator observed that allotment of NCDs by the firm was a public issue (made to more than 49 people), which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which they failed to do.
The company is prima facie engaged in fund mobilising activity from the public, through the offer of NCDs and as a result of the aforesaid activity has violated the provisions of the Companies Act, the regulator said in an interim order.
Accordingly, Sebi has restrained the company and its directors from mobilising any fresh "funds from investors through the offer of NCDs 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".
They have been restrained from accessing the securities markets, Sebi said.
In a separate order, High Ground Enterprises (formerly known as Woo Yang Electronics) has settled case related to alleged failure to make yearly shareholding disclosure with Sebi after payment of Rs 2.6 lakh as settlement fee.
It was alleged that High Ground Enterprises had failed to make yearly shareholding disclosure under the provisions of the Takeover Regulations during the years 2001 to 2003, 2005, 2007 and 2008.
SEBI had initiated adjudication proceedings against it over the violation of the regulations.
Pursuant to a settlement under Sebi's consent mechanism, the market regulator in a ruling today said it is disposing of "the...Adjudication proceedings pending in respect of the applicant (High Ground Enterprises)".
While proceedings against the entity was in progress, it had offered to settle the matter on payment of Rs 2.6 lakh as charges under Sebi's consent order mechanism.
Under the consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.
