SEBI found that Aspen Nirman India collected over Rs33 lakh by issuing NCDs to 167 investors between 2011-12 and 2013-14
Market regulator The Securities and Exchange Board of India (SEBI) has prohibited Aspen Nirman India Ltd and its directors from raising money from investors through issuance of securities for violating public issue norms.
SEBI found that Aspen raked in over Rs33 lakh by issuing non-convertible debentures (NCDs) to 167 investors between 2011-12 and 2013-14. The company, through such activities, violated various norms, SEBI said.
The regulator observed that allotment of NCDs by the firm was a public issue, which under the rules require a compulsory listing on a recognised stock exchange.
It was also required to file a prospectus, among others, which it failed to do.
"The company is engaged in fund mobilising activity from the public, through the offer of NCDs, and as a result of such activity has violated the provisions... of the Companies Act," SEBI said in an interim order.
Accordingly, SEBI has restrained the company and its directors from mobilising any fresh "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 have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
They have been restrained from accessing the securities markets, SEBI said.
The capital market watchdog also asked the entities not to dispose any of the properties or assets acquired by that company without prior permission from the regulator as well as not to divert the funds raised from the public.
In addition, SEBI has prohibited debenture trustee -- Aspen Debenture Trust (represented by trustee Raju Sarkar), from continuing with its assignment in respect of NCDs issue of the company. The regulator also barred it from taking up any new assignment in a similar capacity till further directions.
This order "shall take effect immediately and continue to be in force till further directions".