Market regulator Securities and Exchange Board of India (SEBI) has asked Tribhuvan Agro Project Ltd and the company promoters and directors to refund money collected from investors through redeemable preference shares and secured redeemable non-convertible debentures (NCDs). The refunds should include the money collected from investors, till date, pending allotment of NCD, with interest at the rate of 15% per annum compounded at half yearly intervals.
According to the SEBI Order, the company and its promoters and directors are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market. They are also restrained from issuing prospectus, offer document or advertisement soliciting money from the public and associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. The restrictions shall continue to be in force till the expiry of four years from the date of completion of refunds to investors.
According to the SEBI Order, the Debenture Trustee viz. Tribhuvan Agro Debenture Trust (represented by its Trustees, viz. Sukumar Mondal, Sanjay Nayak, Sujit Kumar Goswami, Rajib Das and Mohammed Sunwas Ali) is prohibited from acting as an intermediary, accessing the securities market and further restrained from buying, selling or dealing in securities, for a period of 4 years.
The company was engaged in fund mobilising activity through issuance of Redeemable Preference Shares and Secured Redeemable Non – Convertible Debentures, to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956 the SEBI (Disclosure and Investor Protection) Guidelines 2003 read with the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009 and the relevant provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
SEBI directed the company and its directors to issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of its Order.
On 24 February 2015, SEBI had directed the company and its directors not to collect any more money from investors.