Regulations
SEBI bars Mass Infra, Greenworld Agro from raising money from investors

SEBI found that Greenworld Agro and Mass Infra collected money from several investors through issuance of redeemable preference shares and non-convertible debentures -NCDs

 

Continuing with strict action against entities raising public money illegally, market regulator Securities and Exchange Board of India (SEBI) has restrained Greenworld Agro Industries Ltd and Mass Infra Realty Ltd from mobilising funds from investors.
 
Besides, SEBI has barred these two companies and their directors from accessing the securities market.
 
The regulator found that Greenworld and Mass Infra had garnered capital from several investors through issuance of redeemable preference shares (RPS) and non-convertible debentures (NCDs) respectively and had "prima facie" violated various norms.
 
SEBI observed that issues by these two firms were made to more than 50 people. Under the rules, that made them public issues of debt securities requiring compulsory listing on a recognised stock exchange. They were also required to file their prospectus, which they failed to do.
 
The regulator, in two separate interim orders, said that Greenworld and Mass Infra are prima facie engaged in fund mobilising activity from the public through the offer of RPS and NCDs respectively and as a result of such activities have violated the provisions of the Companies Act.
 
Accordingly, SEBI has asked these companies not to mobilise funds from investors through the offer of RPS/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 companies and their directors are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
 
These firms and their respective directors are restrained from accessing the securities market.
 
SEBI has also asked the entities not to dispose of any of the properties or assets acquired by that company through the issue of redeemable preference shares, without prior permission from the regulator as well as not to divert the funds raised from public.
 
While asking Greenworld and Mass Infra to provide a full inventory of all its assets and properties, SEBI has also asked these companies to within 21 days from the date of receipt of the order submit all relevant and necessary particulars sought by the watchdog.
 
The directions shall take "effect immediately and shall be in force until further orders," SEBI said in its order.
 
In the case of Mass Infra, SEBI has prohibited Debenture Trust Suraksha and Mass Debenture Trust, from "continuing with their assignment as a debenture trustee in respect of the offer of NCDs of the company and also from taking up any new assignment or involvement in any new issue of debentures, etc in a similar capacity, from the date of this order till further directions".
 
According to SEBI, Mass Infra raised Rs37.90 crore from 14,256 investors while Greenworld mobilised funds to the tune of Rs111.06 lakh from 4,056 investors.
 

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SEBI restricts Orchid Cultivation from mobilising funds

Kolkata-based Orchid Cultivation is barred from mobilising funds through issuance of securities. SEBI also barred the company and its directors from dealing in stock markets

 

Markets regulator Securities and Exchange Board of India (SEBI) has prohibited Kolkata-based Orchid Cultivation from mobilising funds through issuance of securities and also barred the company and its directors from dealing in stock markets, with immediate effect.
 
An initial probe by SEBI found that Orchid Cultivation Projects India mobilised funds through issue of 'Redeemable Preference Shares' (RPS).
 
According to SEBI, the company had violated various norms related to securities market through such fund raising activities.
 
The market regulator observed that the company had issued the securities 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.
 
Among others, the firm was also required to file a prospectus, which it failed to do.
 
In an interim order, SEBI said that steps were required to be taken in the case "to ensure that only legitimate fund raising activities are carried on by Orchid Cultivation Projects India and no investors are defrauded".
 
Consequently, the watchdog has directed the company not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.
 
The firm and its four directors including a past director have been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
 
Further, the SEBI order has asked the company and its directors not to divert any funds raised from public at large.
 
Orchid Cultivation has also been asked to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by the regulator relating to the matter.
 
The company and its directors are required to submit all relevant information with SEBI within 21 days from the date of receipt of the order.
 
SEBI had received several complaints against Orchid Cultivation in respect of non-repayment of amounts arising from subscription of preference shares.

 

 

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SEBI bars Aditya Global Industries from raising funds from public

SEBI found that Aditya Global Industries had mopped up over Rs92 lakh from nearly 1,100 investors through issuance of redeemable preference shares

 

Market regulator Securities and Exchange Board of India (SEBI) has restrained Aditya Global Industries Ltd (AGIL) from raising funds from investors and barred the company and its directors from the securities market.
 
SEBI found that AGIL had mopped up over Rs92 lakh from nearly 1,100 investors through issuance of redeemable preference shares and had "prima facie" violated various norms.
 
Market regulator observed that AGIL's issue was made to more than 50 people which, under the rules, made it a public issue of debt securities requiring compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which it failed to do so.
 
"I am of the view that AGIL is prima facie engaged in fund mobilising activity from the public, through the offer of RPS and as a result of such activity has violated the provisions of the Companies Act," SEBI Whole Time Member S Raman said in an interim order.
 
Accordingly, SEBI has asked AGIL to "not mobilise funds from investors through the offer of RPS 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 company and its directors - Arunava Bose Munshi, Anup Kumar Munsi and Amitava Bose Munshi -- are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
 
The company and its directors are restrained from accessing the securities market.
 
SEBI has also asked the entities not to dispose any of the properties or assets acquired by the company through the issue of redeemable preference shares, without prior permission from the regulator as well as not to divert the funds raised from public.
 
While asking AGIL to provide a full inventory of all its assets and properties, SEBI has also asked the company to submit all relevant and necessary particulars sought by the watchdog within 21 days from the date of receipt of the order.
 
These directions shall take "effect immediately and shall be in force until further orders."
 
According to SEBI, the company had allotted preference shares to a total of 1,070 investors and mobilised funds amounting to about Rs92.42 lakh during the financial year 2009-10.
 

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