Pulling the plug on illegal fund mobilisation, markets regulator Sebi today ordered three companies -- Ravi Kiran Realty India, Angela Agrotech and Infocare Infra -- to refund investors' money.
Besides, the firms and their directors have been barred from the capital market for four years.
The regulator found that Ravi Kiran raised Rs 1.31 crore by issuing redeemable preference shares (RPS) to 1,176 people, Infocare Infra mopped-up Rs 98.35 lakh by allotting non- convertible debentures to 90 investors and another Rs 9.41 lakh via RPS to 95 people.
Angela Agrotech garnered Rs 2.15 crore through the issuance of RPS to 88 persons and another Rs 6.32 lakh by allotting debentures to 32 investors.
These companies collected the funds from investors without complying with the public issue norms.
Under the norms, the firms were required to list its securities on the recognised bourse as the shares were issued to more than 50 persons. It was also required to file a prospectus, among other things, which they failed to do.
In similar-worded orders passed today, Sebi said the companies and their directors will have to refund the money garnered by it via the issuance of RPS and NCDs to investors 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."
After completing the repayments, the company will have to file a report in this regard with Sebi within three months.
The regulator restrained the companies and their directors from buying, selling or otherwise dealing in the securities market "till the expiry of four years from the date of completion of refunds to investors."
Also, they have been asked to provide a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form.
The directions would come into force with immediate effect.
Non-compliance of the order within three months would make Sebi register a case with the state government or police against them for fraud, cheating and misappropriation of public funds.
Besides, the Ministry of Corporate Affairs would initiate the process of winding up of the company.
Earlier, in an interim order, Sebi had put several restrictions on the companies.
