The company was mobilising funds through issue of non-convertible redeemable debentures without complying with Companies Act and provisions of the SEBI Regulations
Market regulator SEBI (Securities and Exchange Board of India), in an Order, directed Chakra Infrastructure to refund money collected through issue of non-convertible redeemable debentures from investors. The refund should also include money collected from investors, till date, pending allotment of securities with interest at the rate of 15% per annum compounded at half yearly intervals.
According to the SEBI Order, Chakra Infrastructure and its promoters/ directors are also restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly. They are also restrained from issuing prospectus, offer document or advertisement soliciting money from the public and associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. These restrictions shall continue to be in force from the date of this Order till the expiry of 4 years from the date of completion of refunds to investors.
The Debenture Trustee, Chakra Debenture Trust, and its trustee Sunil Kumar Sahaare are also restrained from acting as an intermediary, accessing the securities market and further restrained from buying, selling or dealing in securities, for a period of 4 years, according to the SEBI Order.
The SEBI Order instructed the company and its directors shall issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily (in Bengali) with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of this Order coming into effect.
The company was engaged in fund mobilising activity through issue of non-convertible redeemable debentures, to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956 read with Companies Act, 2013 and provisions of the SEBI (issue and Listing of Debt Securities) Regulations, 2008, points out the SEBI Order.
SEBI had earlier passed an interim order on 29 January 2015 in the matter, whereby, it directed the company and its promoters/ directors not to collect any more money from investors through issuance of securities.