Markets regulator Sebi today barred Aapna Pariwar Agro Farming Developers India (APAFDI) and its directors from accessing the securities market with immediate effect.
According to Sebi, the firm issued equity shares to 77 persons in 2009-2010 fiscal and from 53 persons during the 2010-2011 financial year.
Such activities were prima facie in violation of various norms, the Securities and Exchange Board of India (Sebi) said in an order.
The capital market regulator noted that as the issue by company was made to 50 or more persons, it was under a legal obligation to get listed on a stock exchange. Among others, it was also mandatory for the firm to bring out a prospectus with respect to the public issue.
"...The company is prima facie engaged in fund mobilizing activity from the public, through the offer and issuance of equity shares and has allegedly contravened the provisions of sections 56, 60 and 73 of the Companies Act, 1956 read with Companies Act, 2013 and the aforesaid provisions of the ICDR Regulations," Sebi said in an order.
Accordingly, Sebi said that AapnaPariwar Agro Farming Developers India Limited and its directors are "restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till further directions".
The company and its officials have also been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
Further, the Sebi order has asked them not to divert or dispose any funds raised from public at large including assets brought from such money.
The company would also have to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by Sebi in the matter.
These directions "shall come into force with immediate effect and shall continue to be in force till further directions".
The barred directors of the firm are Rejaul Karim, Partha Gope Mazumder and Swaminath Singhaa.
