Sebi today barred Win Realcon and its directors from the capital markets for raising funds from investors, without complying with public issue norms.
The Securities and Exchange Board of India (Sebi) found that Win Realcon had raised Rs 1.18 crore through issuance of Redeemable Preference Shares (RPS) to more than 700 investors between 2011-12 and 2012-13.
Since the shares were issued by the firm to more than 50 people each, it qualified as a public issue that requires compulsory listing on the recognised stock exchange. It was also required to file a prospectus, among other things, which it failed to do.
In an order, Sebi said, "Win Realcon Ltd (WRL) is prima facie engaged in fund mobilising activity from the public, through the Offer of Redeemable Preference Shares," and as a result of such activity has violated the provisions of the Companies Act.
The regulator said that there is no other alternative
But
to take recourse through an interim action against Win
Realcon
and its directors and promoters, for preventing that
Company
from further carrying on with its fund mobilising activity through redeemable preference shares.
Accordingly, Sebi said, "WRL shall forthwith cease to mobilise funds from investors through the Offer of RPS 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."
Besides, the markets watchdog has prohibited the firm and its directors from accessing the securities market till further orders.
Also, they have been directed not to dispose of any of the properties or alienate or encumber any of the assets owned/ acquired by the firm through RPS without prior permission from the regulator.
The directions "shall take effect immediately and shall be in force until further orders", Sebi said.
