NEW DELHI (INDIA): Markets regulator Securities and Exchange Board of India (SEBI)has ordered five companies and their directors to refund more than Rs 30 crore which they had raised by issuing securities without complying with public issue norms.
The companies are Jugantor Realty, Matribhumi Projects (I) Ltd, RBX Land Developers India, Mount Vision Industries India and Adamant Infrastructures.
The companies have been asked to refund the money with an interest of 15 per cent per annum. They have also been barred from the capital markets for a period of four years.
A Securities and Exchange Board of India (Sebi) probe found that the firms mobilised funds by issuing debentures to more than 49 persons, without complying with the public issue norms.
While Jugantor Realty had mobilised Rs 13.28 crore, Matribhumi Projects (I) raised Rs 4 crore by issuing non-convertible debentures.
Similarly, RBX issued debentures amounting to Rs 11.98 crore and Adamant Infrastructure mobilised Rs 25.28 lakh. Mount Vision Industries had raised funds from 70 investors.
The securities were issued by the firms to more than 49 people, which qualified it as a public issue and requires compulsory listing on recognised stock exchanges.
The companies were also required to file a prospectus, among other things, which they failed to do.
In five separate orders, Sebi said the companies and their directors are restrained from accessing the securities market and are further prohibited from buying, selling or dealing in securities, in any manner whatsoever, for a period of four years.
Further, the respective debenture trustees of the companies are also barred from the market for four years for operating without registration from Sebi.
In case the firms fail to comply with the directions, Sebi would initiate action in accordance with the provisions of applicable laws.
The directions would come into force with immediate effect.