Capital markets regulator Sebi today ordered Vaibhav Pariwar India Projects and its directors to refund the money illegally raised from the investors by issuing non-convertible debentures (NCDs).
The Securities and Exchange Board of India (Sebi) directed the firm and its directors to refund the money along with an interest of 15 per cent per annum.
Besides, the company and its directors have been barred from the capital markets for a period of four years.
A Sebi probe found that the company had mobilised Rs 14.47 crore from around 7,000 investors between 2009-2013 under its offer of NCD and in doing so, failed to comply with the provisions of the Companies Act.
The securities were issued by the firm to more than 50 people, which qualified it as a public issue and requires compulsory listing on recognised stock exchanges. The company and its directors were also required to file a prospectus, among other things, which they failed to do.
The firm and its directors are "restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, with immediate effect ", the order said.
Non-compliance of these orders would make Sebi register a case with the state government or police against them for fraud, cheating and misappropriation of public funds.
Besides, Ministry of Corporate Affairs would initiate the process of winding up of the company.
(REOPENS DCM 75)
In a separate order, Sebi has directed Amazan Agro Products and its directors to refund the money illegally raised from the investors by issuing redeemable preference shares (RPS).
A Sebi probe found that the company had mobilised Rs 29.51 lakh from more than 1,000 investors between 2009-2010 under its offer of RPS and in doing so, failed to comply with the provisions of the Companies Act.
The regulator directed the firm and its directors to refund the money along with an interest of 15 per cent per annum.
Besides, the company and its directors have been barred from the capital markets for a period of four years.
Non-compliance of these orders would make Sebi register a case with the state government or police against them for fraud, cheating and misappropriation of public funds.
Besides, Ministry of Corporate Affairs would initiate the process of winding up of the company.
