Market regulator Sebi today barred Real Tulip India Limited (RTIL) from raising funds through issuance of securities and also restricted the company and its directors from dealing in capital markets.
The Securities and Exchange Board of India (Sebi) found that the company had mobilised a collective amount of over Rs 22 lakh from 191 investors through issuance of non-convertible debentures (NCDs)and "prima facie" violated various norms.
The regulator observed that the company allotted equity shares to over 50 persons which under the rules made it a public issue of securities.
Hence, it would require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
According to Sebi, RTIL alloted shares to public but did not comply with provisions of the Companies Act.
"I am of the view that RTIL is prima facie engaged in fund mobilising activity from the public, through the offer of NCDs and as a result of the aforesaid activity has violated the provisions of the Companies Act," Sebi Whole Time Member S Raman said in an interim order.
Sebi said that "RTIL shall not mobilize any fresh funds from investors through the offer of NCDs 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."
The company and its present directors --Dipankar Ghosh Tirtha Halder Maloy Kumar Guha, Malay Halder, Prosenjit Sil-- are prohibited from any offer document for soliciting money from the public for the issue of securities.
Besides, "RTIL and its directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions."
The regulator has also asked the entities not to dispose any of the properties or assets acquired by that company through issue of preference shares, without prior permission from the regulator as well as not to divert the funds raised from public.
Sebi bars debenture trustee, Kanan Bala Halder, from continuing with her present assignment as a debenture trustee in respect of the NCDs of RTIL and also from taking up any new assignment or involvement in any new issue of debentures, etc. in a similar capacity.
These directions shall take effect immediately and shall be in force until further orders.
"RTIL issued NCDs to 191 investors and mobilised approximately Rs 22,47,800- for the period from February 2, 2012 to March 31, 2013," Sebi said.
