Initiating strict action for raising unauthorised raising of money from the public, Sebi today barred two companies -- Promotech Infratech and Golden Life Agro -- as well as their directors from soliciting funds through issue of securities, till further orders.
In both cases, the Securities and Exchange Board of India (Sebi) had found that they raised funds from public by issuing Non-Convertible Debentures ostensibly by way of private placement without its approval.
The complaint that Promotech collected from the public without Sebi permission was received from the Reserve Bank of India (RBI) in April 2013.
In a 15-page order, the market watchdog said that Promotech and its directors -- Anukul Maiti, Kanika Maiti, Swapan Roy, Samar Mustafi and Atanu Halder -- are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, till further orders.
These entities have been restrained from raising money from the public either directly or indirectly.
Promotech was found to have unauthorisedly raised money through issue of Non Convertible Debentures.
Separately, in a 19-page order, Sebi barred Golden Life Agro India Ltd and its directors Tipu Sultan, Shri Biswanath Mondal, Subhas Sarkar, Nirjal Pal, Swapan Sadhukhan, Chandan Debnath and Uttam Chakraborty from soliciting money from the public for the issue of securities till further orders.
It was found that Golden Life Agro raised money by issuing Non Convertible Redeemable Secured Debentures.
Both companies should not mobilise funds from investors through the issue of Secured Non-Convertible Redeemable Debentures or equity shares or any other securities, to the public and/or invite subscription, in any manner.
Besides the watchdog has prohibited debenture trustee Pulak Roy from continuing with his present assignment as a debenture trustee in respect of the issue of Secured Non-Convertible Redeemable Debentures of Promotech Infratech Ltd.
In the case of Golden Life Agro, Jyotsna Sadhukhan and Jharna Sarkar have been prohibited from continuing as debenture trustees in respect of the issue of Non Convertible Redeemable Secured Debentures of the company.
All these debenture trustees have been restrained from taking up any new assignment or involvement in any new issue of debentures in a similar capacity, from the date of this order till further directions.
All entities have been given 21 days time, from the date of receiving the order, to let the regulator know whether they desire to avail themselves an opportunity of personal hearing.
In both orders, Sebi has referred to Supreme Court ruling in the Sahara case to establish its jurisdiction in looking at instances of unauthorised raising of money from the public.
