Market regulator Sebi has barred GSHP Realtech and its directors from raising funds through issue of securities till further directions.
As per the findings of Securities and Exchange Board of India (Sebi), GSHP Realtech had been "raising funds from public by issuing NCDs (Non-Convertible Redeemable Debentures) ostensibly by way of private placement" without seeking approval of the market regulator as required.
In a order dated May 15, the market regulator said that "protecting the interest of investors is the foremost mandate for Sebi and therefore, steps have to be taken in the instant matter to ensure only legitimate fund raising activities are carried on by GSHP Realtech and no investors are defrauded".
Accordingly, Sebi has prohibited GSHP Realtech and its directors -- Sanjay Kumar Srivastava, Arun Kumar Singh, Dharampal Kumar Rawat, Mahesh Kumar Singh and Raj Kumar Mondal -- "from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities till further orders".
"GSHP Realtech shall not mobilise funds from investors through the issue of Secured Non-Convertible Redeemable Debentures or through the issuance of equity shares or any other, securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions," it added.
The company had its directors have also been asked to provide a full inventory of all its assets and properties as well as not dispose of any of the properties or alienate or encumber any of the assets owned/acquired through the issue of the NCDs without prior permission from Sebi.
"GSHP Realtech and its...Directors shall not divert any funds raised from public at large through the issue of Secured Non-Convertible Redeemable Debentures, which are kept in bank account(s) and/or in the custody of GSHP," it added.
Besides, Sebi has barred GSHP Welfare and Development Trust from continuing as a debenture trustee in respect of the issue of NCDs of the company and also from taking up any new assignment or involvement in any new issue of debentures in a similar capacity, till further directions.
The regulator had found that the trust had "prima facie acted as unregistered debenture trustee, which is a violation of the...Provisions of the Sebi Act".
All entities have been given 21 days time, from the date of receiving the order, to let the regulator know whether they desire to avail themselves an opportunity of personal hearing.
