Pulling the plug on yet another illicit investment scheme, market regulator Sebi has restrained Kolkata-based Vikdas Industries from raising funds from the public.
Sebi also barred the company's directors from the capital markets.
The capital market regulator said as the issue by company was made to 50 or more persons, it was under a legal obligation to get listed on a stock exchange. Among others, it was also mandatory for the firm to bring out a prospectus with respect to the public issue.
"The company was engaged in fund mobilising activity through issue of NCDs to more than 49 persons without complying with the relevant provisions of the Companies Act," Sebi said in an interim order.
Accordingly, Sebi has directed the company not to mobilise funds from investors.
The company and its directors have also been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
Further, Sebi has asked them not to divert or dispose any funds raised from public at large including assets brought from such money.
Also, Sebi has barred debenture trustee, Vikdas Industries Debenture Trust (represented by its Trustee, Ranadeb De) from continuing with his present assignment in respect of the current NCDs issue and also from taking up any new assignment a similar capacity.
