NEW DELHI, Dec 24: Markets regulator Sebi has barred Sunshine AgroInfra Ltd (SAIL) and its directors from mobilising funds from investors through issuance of securities till further orders.
The entities have also been restrained from accessing the market, the Securities and Exchange Board of India (Sebi) said in an interim order.
It was alleged that the company raised Rs 8.23 lakh illegally from 112 investors through redeemable preference shares (RPS) in 2011–12.
Since the firm had issued shares to over 49 persons, it qualified as a public issue of securities that requires compulsory listing on a recognised stock exchange.
It was also required to file a prospectus, among others, which it failed to do.
The company and its directors have also been prohibited from soliciting money from the public for the issue of securities in any manner, directly or indirectly.
Further, the entities have been directed not to dispose of, alienate or encumber any of their assets or not divert any funds raised from public through the offer and allotment of preference shares.
They have also been ordered to furnish all information in connection with the offer and allotment of preference shares.
Besides, the regulator has given a time of 21 days to the firm and its directors to file their replies and a time period of 90 days to seek an opportunity of personal hearing.
In case they fail to do so, Sebi said they would have to refund the entire amount to the investors along with an interest of 15 per cent per annum and would also be barred from the securities market for four years from the date of repayment. (PTI)
Trending Now
E-Paper
Follow our WhatsApp channel