Sebi today barred a director of Sumangla Industries from accessing the securities market, and reiterated the previous order directing promoters and directors along with the firm to wind up its illegal collective scheme and refund the money to the investors.
Sebi in July 2013 had passed the final order against the director, Kaushik Roy, along with other promoters and directors of the company and held that they were engaged in illegal Collective Investment Scheme (CIS) thereby directing them to refund the money within the three months.
Subsequently, Roy appealed against the order before Securities Appellate Tribunal (SAT) on the ground that the order has been passed without giving him an opportunity of hearing.
The SAT in January 2017 quashed and set aside the Sebi's July 2013 order and directed it to pass fresh order in the matter of Roy.
Following the SAT order, a hearing was granted to Roy and made submission saying that he was not involved with policy matters of the company.
"Having been a member of the Board, particularly at the time of money mobilisation, Roy cannot shrug off his responsibility for certain major decisions" Sebi said in an order.
"Kaushik Roy shall not access the securities market...and is further restrained and prohibited from buying, selling or otherwise dealing in the securities market.. from the date of this Order, till the completion of refund," Sebi added and reiterated the directions of July 2013 order.
Disclaimer: No Business Standard Journalist was involved in creation of this content
