Markets regulator Sebi has imposed a fine of Rs 1 crore on Kolkata-based Vibgyor Allied Infrastructure and three company directors for failing to repay the money to investors collected illegally.
In an order, Sebi said it imposes penalty of Rs 1 crore on Vibgyor Allied and its directors, Rabindra Nath Dey, Raja Bhadra and Rana Bhadra, to be paid "jointly and severally."
The regulator in February 2014 through an order directed the entities to refund the money to the investors after it found that the entities had issued optionally fully convertible debentures (OFCDs) to 49,562 investors and raised an amount of Rs 61.76 crore without complying with requirements relating to the public issue.
After an appeal by the entities against Sebi in SAT (Securities Appellate Tribunal), the tribunal in January 2016 directed entities to comply with regulator's direction passed in February 2014.
The entities have not paid to the investors and thus the claim of repayment to investors by them proved to be false and incorrect, Securities and Exchange Board of India (Sebi) said in an order dated October 31.
"Noticees (Vibgyor and its directors) not only failed to repay to the investors but continuously endeavours to solicit more funds," the regulator noted.
The entities "have grossly failed to comply with Sebi February 2014 order... and consider it as a fit case for imposition of maximum penalty," it said.
In a separate order, Sebi imposed a fine of Rs 2 lakh each on Suresh Nenmalji Malvi and Minaben Prafulbhai Shah for failing to disclose the change in their shareholding in the SMS Techsoft to the BSE under SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
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