Market regulator Sebi today barred Kolkata-based Dreamland Industries and its directors from mobilising funds from public through issuance of securities with immediate effect.
It was alleged that Dreamland Industries raised Rs 34 lakh through issue of non-convertible debentures (NCDs) to 85 people.
The Securities and Exchange Board of India (Sebi) found that the company had issued debentures to 50 or more persons as so was under a legal obligation to get listed on a stock exchange.
Among others, it was also mandatory for the company to bring out a prospectus with respect to the public issue. However, it failed to comply with these norms.
In an interim order, Sebi said "Dreamland Industries is prima facie engaged in fund mobilising activity from the public, through the offer of NCDs" and as a result of such activity has violated the provisions of the Companies Act.
Accordingly, Sebi prohibited the company and its directors "from mobilising funds through the offer of NCDs or through the issuance of equity shares or through any other form of securities, to the public and/ or invite subscription, in any manner whatsoever, either directly or indirectly till further directions."
The company and its directors-- Ranjit Ghosh, Mrityunjoy Modak Bhowmik, Anuva Ghosh, Sukumar Ghosh, and Haradhan Acharjee--are restrained from accessing the securities market till further directions.
Sebi has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of equity shares, without prior permission from the regulator as well as not to diver.
While asking Dreamland Industries to provide a full inventory of all its assets and properties, Sebi has also asked the company to submit all relevant and necessary particulars sought by the watchdog.
These directions would come into force with immediate effect.
"During the financial year 2012-13, Dreamland Industries allotted NCDs to a total of 85 individuals/investors and mobilised funds amounting to approximately Rs 0.34 crore," Sebi noted.
