Cracking down on illegal money pooling schemes, Sebi has barred three firms from raising funds through securities while also restricting them and their respective directors from dealing in stock markets.
The companies -- Fantasy Infraventure & Agrimart India Ltd, Equinox Infratech Ltd and Morningstar Ventures Ltd -- had violated various norms by mobilising public funds through issuance of securities.
Preliminary probe by Sebi found that Equinox Infratech had raised about Rs 12.47 crore from issue of 'Non-Convertible Redeemable Secured Debentures'.
Morningstar Ventures and Fantasy Infraventure had mobilised Rs 5.62 crore and Rs 19.96 lakh respectively through issuance of 'Redeemable Preference Shares'.
The capital market regulator noted that as the issue by companies was made to 50 or more persons, the company was under a legal obligation to get listed on a stock exchange.
Among others, it was also mandatory for the firms to bring out a prospectus with respect to the public issue.
Sebi in three separate interim orders noted that steps were required to be taken in the matter "to ensure that only legitimate fund raising activities are carried on" by the companies and that "no investors are defrauded".
Consequently, the regulator has directed the companies not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.
The firms as well as their directors have been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
Further, the Sebi order has asked them not to divert any funds raised from public at large.
The companies would also have to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by Sebi in the matter.
They are also required to submit all relevant information with Sebi within 21 days from the date of receipt of the order.
In its order against Equinox Infratech, Sebi has barred Equinox Debenture Trust from continuing as a debenture trustee in respect of the offer of NCRSDs of Equinox and also from taking up any new assignment, till further directions, for not complying with relevant norms.
