SEBI found that Ramel Real Estate had illegally mobilised Rs75 crore from public through issue of non-convertible debentures
Market regulator Securities and Exchange Board of India (SEBI) has barred Ramel Real Estate and Infrastructure Ltd from raising public funds through securities. SEBI also restricted the company and its four directors, Remendra Mohan Sarkar, Rameswar Podder, Sukanta Deb and Partha Das from accessing the capital markets, till further orders.
SEBI found that Ramel had mobilised Rs75 crore from public through issue of non-convertible debentures (NCDs) and through such activity had "prima facie" violated various norms.
SEBI observed that Ramel NCD issue was made to over 50 persons which under the rules made it a public issue of debt securities and hence the firm had to ensure listing of the issue on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
In an order today, SEBI said that steps were required in the instant matter "to ensure only legitimate fund raising activities are carried on by Real Estate and Infrastructure and no investors are defrauded".
Accordingly, SEBI has asked the company to "not mobilise funds from investors through the offer of NCDs or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions".
Further, the firm and its directors are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
"Ramel Real Estate and Infrastructure and its directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions," the regulator added.
SEBI has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of NCDs, without prior permission from the regulator, as well as not to divert the funds raised from public.
It has also asked the company and its directors to provide a full inventory of all its assets and properties.
Besides, SEBI has "prohibited" Ramel Real Estate and Infrastructure Debenture Trust from continuing with its present assignment as a debenture trustee in respect of the NCDs issue of the company and also from taking up any new assignment or involvement in any new issue of debentures, among others, in a similar capacity, till further directions.
SEBI said that Ramel Real Estate and Infrastructure Debenture Trust had acted as unregistered debenture trustee which is in violation of the norms.
SEBI also directed the company and its nine promoters and directors not to issue any offer document or advertisement for soliciting money from the public for the issue of securities
Market regulator Securities and Exchange Board of India (SEBI) has barred ICore E Services Ltd from raising money by issuing securities. SEBI also restricted the company and its nine directors, Anukul Maiti, Kanika Maiti, Swapan Kumar Roy, Radhashyam Giri, Tapan Kumar Chatterjee, Saral Ranjan Gupta, Amal Bhattacharya, Chandan Dey and Mahadeb Sen from markets till further directions.
SEBI said that ICore E Services was allegedly “mobilising funds from the public without complying with the applicable law” through issue of debentures and preference shares with promises of huge returns to investors.
The company had allegedly collected funds of Rs45.74 crore during 2009-2010.
SEBI observed that issue was made to over 50 persons which under the rules made it a public issue of securities and hence would require a compulsory listing on a recognised stock exchange. The company was also required to file a prospectus which it failed to do.
Consequently, in an order, SEBI has barred the firm “from mobilising funds through issue of equity shares, debentures, preference shares or through issuance of any kind of security to public, and/or invite subscription or deposit, in any manner whatsoever, either directly or indirectly, till further directions”.
SEBI also directed the company and its promoters and directors not to issue any offer document or advertisement for soliciting money from the public for the issue of securities, till further orders.
They have been also barred from disposing of any of the properties without prior permission from SEBI. Besides, it cannot divert any funds raised from the public which are kept in bank account(s) and/or in the custody of the company.
The company and its promoters and directors also have to furnish all details sought by SEBI for its probe.
The directions would take effect immediately. SEBI had received complaints and references alleging that various companies including ICore E Services is mobilising funds from public, through issue of securities and misrepresenting that they had permissions and licenses for doing so from regulatory agencies like SEBI, Ministry of Corporate Affairs.
The complaints alleged that the company did not have any profitable business and that the only source for refunding was from fresh money collected.
It was also charged that the company invested the mobilised money in loss making businesses and wasteful publicity through advertisements.
There are excellent opportunities for setting up urea plants in Myanmar. This would help Myanmar to increase its agricultural production and also help India, as the agreed balance of urea could be shipped back to India
India's External Affairs Minister, Sushma Swaraj is on a visit to Myanmar on Friday to attend the India-ASEAN Foreign Ministers' meeting. She will attend the East Asian Summit meeting for Foreign Ministers as also the ASEAN Regional Forum (ARF) that would focus on security policy for its member countries.
Her three day visit to Nay Pyi Taw, where these meetings will be held covers a hectic schedule. Since taking over as the External Affairs Minister, Sushma Swaraj has already visited Bhutan, Bangladesh and Nepal.
While in Myanmar, she is expected to call on President Thein Sein and discuss important issues affecting both countries. One may presume that this will also give her the opportunity to extend the invitation to President Thein Sein to visit India, on behalf of Prime Minister Modi.
She will be meeting U Wunna Maung Lwin, her counterpart in Myanmar and hold discussions to promote trade and create interest for joint ventures in their country. She will not be able to meet the popular opposition leader, Aung San Suu Kyi.
It may recalled that Essar Projects Ltd, as a construction contractor, is working on the Rs350 crore port-cum-waterway project, sponsored by India, which is expected to be completed soon. This project involves building the Sittwe port and a jetty at Paletwa. Besides, dredging the Kalandan River is nearing completion. When completed, it will facilitate an easy connection for India to ship goods from Kolkata port to Mizoram, via Sittwe.
India and Myanmar have a long land border (1,646 kms) and border trade was legalised in 1995. On the whole, the trade between both the countries has only reached $1.87 billion. There is potential for more than $6/8 billion a year.
One major area where India has made headway is in securing a contract of exploring two hydrocarbon blocks in March this year. Reliance was one of the successful bidders and the other has been won by a consortium of Oil India Ltd, Mercator Petroleum and Oilmax Energy. This group has won three blocks for exploration. It now remains to be seen as to who strikes commercially viable gas or oil in these blocks!
At the moment, the largest buyer of Myanmar gas is China, who has laid a long pipeline to their country. China is fully entrenched in Myanmar and it would take a herculean effort to dislodge them from this position. Considering the geopolitical situation, India has to do its best in securing some interesting and useful joint ventures, in such fields as the fertiliser industry, in making urea locally from the gas produced. This would help Myanmar to increase its agricultural production and also help India, as the agreed balance of urea could be shipped back to India. In fact, on such a project, Railways could be associated in laying a track to ship the goods upto Sittwe port from where it can be exported to India.
Myanmar would be happy to be associated with India and India should be able to offer easy credit facilities to this country. For making this possible, one hopes PM Narendra Modi visits Myanmar soon and offers similar terms, like he did with Nepal.
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)