Midas Touch Assets and Securities restrained from mobilising funds
Moneylife Digital Team 10 December 2014

The company and its directors are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, by a SEBI order

 

Prashant Saran, whole time member, SEBI, has passed an interim order on Midas Touch Assets and Securities Limited, directing that the company shall not mobilise funds from investors. Further, the company and its directors are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders. 
 
The company and its directors have also been 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 company and its directors have further been directed not to dispose off any of the properties or alienate the assets of the company and not to divert any funds raised from public, through the offer of cumulative redeemable preference shares, which are kept in bank accounts and/or in the custody of the company without prior permission of SEBI until further orders. 
 
The company and its directors have also been directed to co-operate with SEBI and shall furnish documents, as required by SEBI and provide a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form.
 
The company was engaged in fund mobilising activity through issue of cumulative redeemable preference shares to more than 49 persons without complying with the relevant provisions of the Companies Act, 1956.
 
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