Market regulator Sebi today restrained Aditya Global Industries Ltd (AGIL) from raising funds from investors and barred the company and its directors from the securities market.
The Securities and Exchange Board of India (Sebi) found that AGIL had mopped up over Rs 92 lakh from nearly 1,100 investors through issuance of redeemable preference shares and had "prima facie" violated various norms.
Market regulator observed that AGIL's issue was made to more than 50 people which, under the rules, made it a public issue of debt securities requiring compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which it failed to do so.
"I am of the view that AGIL is prima facie engaged in fund mobilising activity from the public, through the offer of RPS and as a result of such activity has violated the provisions of the Companies Act," Sebi Whole Time Member S Raman said in an interim order.
Accordingly, Sebi has asked AGIL to "not 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."
Further, the company and its directors - Arunava Bose Munshi, Anup Kumar Munsi and Amitava Bose Munshi -- are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
The company and its directors are restrained from accessing the securities market.
Sebi has also asked the entities not to dispose any of the properties or assets acquired by the company through the issue of redeemable preference shares, without prior permission from the regulator as well as not to divert the funds raised from public.
While asking AGIL to provide a full inventory of all its assets and properties, Sebi has also asked the company to submit all relevant and necessary particulars sought by the watchdog within 21 days from the date of receipt of the order.
These directions shall take "effect immediately and shall be in force until further orders."
According to Sebi, the company had allotted preference shares to a total of 1,070 investors and mobilised funds amounting to about Rs 92.42 lakh during the financial year 2009-10.
