Markets regulator Sebi has barred Trustline Realty Infra India Ltd (TRIL) and seven associated entities from the securities market for allegedly violating public issue norms.
Along with TRIL, its three directors Mohammad Qamar, Susweta Dutta and Md Mojahd and four promoters -- Rafat Naz, Md Aadil, Aman Kumar and Sarojani Devi -- have been banned till further orders.
TRIL and its directors and promoters "shall not access the securities market or buy, sell or otherwise deal in the securities market, either directly or indirectly, or associate themselves with any listed company or company intending to raise money from the public", Sebi said in an order.
TRIL had raised a little over Rs 11.56 lakh during the period from September 2011 to January 2012 by way of allotting redeemable preference shares to 52 persons.
According to an order, dated April 5, there is no evidence that the company complied with Section 56 and 60 of the Companies Act, 1956.
Section 56 requires the company to have information in its prospectus while Section 60 mandates registration of such prospectus with the Registrar of Companies.
"I find that there is no evidence on record to indicate that TRIL has complied with the provisions of Sections 56 and 60 of Companies Act, 1956, in respect of the offer and allotment of preference shares," Sebi Whole Time Member G Mahalingam said in the order.
The regulator has also directed the entities not to dispose of their assets or divert funds raised from public through the offer and allotment of preference shares.
Disclaimer: No Business Standard Journalist was involved in creation of this content
