Sebi today barred two Pailan Group companies as well as their present and former directors from the securities market for illegally raising funds worth over Rs 98 crore.
The two companies of the Kolkata-based Pailan Group -- Pailan Agro India Ltd and Pailan Park Development Authority Ltd -- have also been restrained from raising fresh funds.
In an order, the Securities and Exchange Board of India (Sebi) said that Pailan Agro allegedly raised about Rs 83.42 crore through issue of non-convertible secured redeemable debentures.
Also Read
Apart from the company, its present directors -- Sekhar Chandra Koley, Bipin Kumar Singh, Chandan Chakraborty, Avijit Chowdhury and Atul Agarwal -- have been "prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders".
The ban would also be applicable on its past directors - Apurba Kumar Saha, Madan Kaul, Shrikant Jain and Rajindra Bahadur.
Meanwhile, Sebi found that Pailan Park mopped up Rs 15 crore by way of issuing non-convertible debentures and Rs 13.26 lakh through redeemable preference shares illegally.
In this case, the firm's present directors -- Sekhar Chandra Koley, Bipin Kumar Singh, Chandan Chakraborty, Avijit Chowdhury, Atul Agarwal and Vivek Kumar -- have been prohibited from raising funds till further directions.
Apurba Kumar Saha, a past director of the company, has also been restrained.
All these entities have been 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".
