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.