Markets regulator Sebi today imposed a penalty of Rs 1 crore on Rhine and Raavi Credits and Holdings and its three directors for failing to refund the money raised illegally from investors.
The directors are Rakesh Gupta, Birendra Kaji and Surendra Kumar.
In March 2015, the Securities and Exchange Board of India (Sebi) had directed the firm and directors to refund over Rs 36 crore raised from investors along with interest.
Besides, the entities were also banned from accessing the securities market for at least four years.
A probe by the regulator had found that the company had raised Rs 36.30 by issuing Non-Convertible Redeemable Debentures (NCDs) to more than 700 investors violating various norms.
"... the noticees (the firm and directors) have failed to refund the investors' money and accordingly failed to comply with the directions issued vide Sebi order dated March 27, 2015," the regulator said in a ruling today.
Noting that the refunds have not been made by Rhine and Raavi Credits and Holdings and its directors, Sebi said all the investors' money is in their possession and used by them only.
"Accordingly, noticees have made disproportionate gains by not complying with Sebi order," the regulator said.
As per the order, the entities have to pay the fine of Rs 1 crore within 45 days.
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