Regulator Sebi today asked Mangalam Agro Products, its promoters and directors to refund the money it had raised from public through issuance of securities.
The refund has to be made along with an "interest of 15 per cent per annum compounded at half yearly intervals, from the date when the repayments became due to the investors till the date of actual payment".
In the ruling today, the company, its promoters and directors have also been barred from dealing in securities as well as raise capital from the stock markets, "from the date of this order till the expiry of 4 years from the date of completion of refund to investors".
The Securities and Exchange Board of India (Sebi) found that Mangalam Agro had raised Rs 11 crore from illegal issuance of 'Secured Non-Convertible Debentures (NCDs) to around 4,820 investors during 2011-2012.
According to the market regulator, the funds raised by Mangalam Agro through the issue amounted to a public offer as it was made to more than 50 persons and as a result required mandatory listing on the stock exchanges.
In an order today, the regulator directed Mangalam Agro and its directors/promoters, to "jointly and severally...Refund the money collected by the company through the issuance of NCDs".
Besides being barred from the capital markets, the firm's directors -- Kamolesh Kumar Ghosh, Ujjal Sikder and Tapan Kumar Dey -- have been restrained from associating themselves, with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with Sebi, for a period of 4 years.
Moreover, Sebi has asked Mangalam Institute of Development and Research and Chandani Mohta not to operate as a debenture trustees or intermediary in the securities market, without obtaining a certificate of registration to undertake that assignment as required under law.
"Further, they are restrained from accessing the securities market and also prohibited from buying, selling or dealing in securities, in any manner whatsoever, for a period of 4 years," Sebi said.
Both the entities had acted as debenture trustees to NCD issue by Mangalam Agro without complying with necessary norms.
In its order, Sebi noted that the central government in July, 2014 had appointed the Serious Fraud Investigation Office (SFIO) to investigate into the affairs of the company.
The High Court of Calcutta had directed that upon appointment of the agency (SFIO), the assets and properties of which possession had been taken by the special officer shall be handed over to the agency including the bank accounts.
