SEBI also prohibited Idol India Infrastructures, its promoters and directors from accessing the securities market for raising funds
Market regulator Securities and Exchange Board of India (SEBI) has directed Idol India Infrastructures Ltd, its promoters and directors to refund money collected from investors.
SEBI said it found Idol India Infra, its promoters and directors flouting norms by raising Rs4.95 crore from over 10,000 investors through issuing non-convertible debentures (NCDs).
However, the company claimed to have repaid a sum of Rs4.41 crore along with interest to its investors.
In an order, SEBI directed Idol India Infrastructures, its promoter and directors to "refund the money collected by the company through the issuance of NCDs...With returns that were promised by the company to its investors. "
In cases of delay in making the repayments, the company, its promoters and directors, would return the money collected from its investors with an interest of 15% per annum compounded at half yearly intervals, from the date of this order till the date of actual payment, SEBI said.
The regulator said that repayments as claimed by the company, would need to be certified by Chartered Accountants.
The market regulator also asked Idol India Infra to issue public notice, in all editions of two national dailies and in one local newspaper detailing the modalities for refund, including details on contact persons including names, addresses and contact details, within next 15 days.
SEBI also prohibited India Infrastructures Ltd and its promoters and directors from accessing the securities market for the purposes of raising funds with immediate effect.
"This restraint shall continue be in force for a further period of two years on completion of the repayments (to its investors), made to the satisfaction of SEBI," the regulator said in its order.