SEBI (Securities and Exchange Board of India) passed an order on Sunheaven Agro India and its directors directing it to refund the money collected by the company through issuance of Redeemable Preference Shares from investors, with interest at the rate of 15% per annum compounded at half yearly intervals. Also, it is not to access the capital market or deal in securities for four years after completion of the refund to investors.
The directors, as per the SEBI Order, are also restrained from associating themselves with any listed public company which intends to raise money from the public, or any intermediary registered with SEBI for a period of four years after completion of refund to investors. Its present directors, viz. Madhab Chandra Das, Khokon Biswas, Provash Bala, Kanai Lal Pramanik and Shri Ganesh Dam and its past directors, viz. Suranjan Mondal, Kashi Nath Chanda, Mrityunjay Bar and Pijush Kanti Jana are bound by the SEBI Order.
The company was engaged in fund mobilising activity through issuance of Redeemable Preference Shares (RPS), to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956.
The SEBI Order notes that the company had mobilised about Rs11.54 crore from at least 7,772 persons under its offer and issue of RPS and in doing so it has failed to comply with the provisions of the Companies Act, 1956. The SEBI Order also noted that the company had commenced the offer and issuance of RPS from 2009-2010 and continued with its money mobilisation activity till the financial year 2012-13.
Sunheaven Agro India will also be required to advertise in the press and give publicity to investors who have lost money, so that they come forward and take the refunds.