Continuing its clamp down on entities running illegal money pooling schemes, Sebi has barred Alchemist Holdings and its promoters from securities market for four years.
The company is estimated to have raised over Rs 440 crores.
The Securities and Exchange Board of India (Sebi) has directed the company and its executives to repay money raised by way of issuing redeemable preference shares along with 15 per cent annual interest.
The interest amount would be compounded at half yearly intervals, from the date when the repayments became due to the investors till the actual payment date.
Apart from the company, the executives who have been asked to refund the money are Brij Mohan Mahajan, Vikramaditya Singh, Chandra Shekhar Chauhan, Krishna Kumar Singh and Rajiv Kumar Nayar.
Sebi Whole Time Member Prashant Saran barred the company from the capital market and would be applicable from "date of this order till the expiry of four years from the date of completion of refunds to investors, made to the satisfaction of Sebi".
The same would be applicable on its promoters and directors including Brij Mohan Mahajan, Vikramaditya Singh and Chandra Shekhar Chauhan.
"They are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public, with immediate effect.
"This restraint shall come into force with immediate effect and shall continue to be in force from the date of this order till the expiry of four (4) years from the date of completion of the repayments to the investors," Saran said in his order dated August 14.
Citing the company's annual report for 2012-2013 period, Sebi said it was observed that over 44.16 crore redeemable preference shares worth Rs 441.64 crore were outstanding as on March 31, 2012.
