Regulations
SEBI bars Kolkata-based MBK Business from raising funds

SEBI found that MBK Business had raised funds from thousands of investors through issue of secured redeemable debentures-SRDs

 

Continuing its crack down on illegal fund raising activities, market regulator Securities and Exchange Board of India (SEBI) has barred Kolkata-based MBK Business Development from raising funds from public through issue of securities. SEBI also prohibited the company and its three directors Prafulla Kumar Kundu, Saikat Roy and Anshuman Ghosh from accessing markets.

 

SEBI found that MBK had raised funds from thousands of investors through issue of secured redeemable debentures (SRD) and as a result of such activity had "prima facie" violated regulatory norms.

 

SEBI noted that MBK's debenture issue was made to over 50 persons which under the rules made it a public issue and therefore attract the requirement of compulsory listing before a recognized stock exchange as well a filing of a prospectus, which the company failed to do.

 

"Protecting the interests of investors is the foremost mandate for SEBI and therefore, steps have to be taken in the instant matter to ensure only legitimate fund raising activities are carried on by MBK and no investors are defrauded," the market regulator said in an order today.

 

Accordingly, SEBI has ordered MBK to "not mobilise funds from investors through the Offer of SRDs 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".

 

Besides, the company and its three directors are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.

 

"MBK 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," SEBI said.

 

SEBI has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of SRDs, 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.

 

MBK has been directed by SEBI to furnish complete and relevant information within 21 days.

 

Moreover, SEBI has "prohibited" trustees of Secured Debentures Trust of MBK Business Development India Ltd and from continuing with its present assignment as a debenture trustee in respect of the SRDs issue of the company and also from taking up any new assignment or involvement in any new issue of debentures, till further orders.

 

SEBI said that the trustees had acted as unregistered debenture trustee which was in violation of the norms.

 

The market regulator had begun its probe after receiving a request early last year to look into fund raising activity of MBK.

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SEBI bars fund raising by Ramel Real Estate through NCDs

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.

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SEBI bars ICore E Services, nine directors from raising funds via securities

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.

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