Capital market regulator Sebi today restrained Nirmal Infrahome Corporation Ltd from mobilising money through issuance of securities to the general public with immediate effect.
Besides, the company and its directors are prohibited from dealing in markets till further directions.
The Securities and Exchange Board of India (Sebi) found that the company had garnered crores of rupees from several investors via issuance of Secured Redeemable Non-Convertible Debentures (SRNCDs)and through such activity had "prima facie" violated various norms.
The regulator observed that the company issued NCDs to over 50 persons which under the rules made it a public issue of debt securities and hence would require a compulsory listing on a recognised stock exchange.
The company was also required to file a prospectus, among others, which they failed to do.
"...Nirmal is prima facie engaged in fund mobilising activity from the public, through the offer of SRNCDs, and as a result of such activity has violated the provisions of the Companies Act, the Sebi said in an interim order.
Accordingly, the Sebi has asked Nirmal not to "mobilise any fresh funds from investors through SRNCDs 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 are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities. They are prohibited from dealing in capital markets.
The Sebi has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of such issue, without prior permission from the regulator as well as not to divert the funds raised from public.
The Sebi asked Nirmal to provide a full inventory of all its assets and properties.
It also asked these companies to within 21 days from the date of receipt of the order submit all relevant and necessary particulars sought by the watchdog.
Further, the Sebi has barred Debenture Trustee --Jeetendra Rajput-- from continuing with his assignment as debenture trustee regarding the issue and also from taking up any new assignment in a similar capacity.
These "directions shall take effect immediately and shall be in force until further orders."
The company has received Rs 1.85 crore from 3,309 investors towards its various schemes of debentures during 2012-13. 3. It claimed to have refunded Rs 20.63 lakh.
