SEBI bars Infinity Realcon from raising funds via securities

Moneylife Digital Team 13 January 2015

According to SEBI probe Infinity Realcon issued redeemable preference shares to 24,718 investors and mobilised about Rs19.32 crore between 2009 to 2013

Market regulator Securities and Exchange Board of India (SEBI) has barred Infinity Realcon Ltd from raising funds from investors through issue of securities. SEBI also barred the company and its directors from dealing in markets till further directions.

SEBI said it found that Infinity Realcon had garnered crore of rupees from nearly 25,000 investors via issuance of non-convertible debentures (NCDs) and redeemable preference shares (RPS) through such activities had prima facie violated various norms.

According to SEBI, the company issued RPS to 24,718 investors and mobilised about Rs19.32 crore during 2009-10 to 2012-13. Besides, amount raised through issue of debentures was Rs1 crore.

SEBI observed that Infinity Realcon issued NCDs and RPS to over 50 persons, which under the rules made it a public issue of debt securities and hence would require a compulsory listing on a recognised stock exchange.

The company was also required to file a prospectus, among others, which it failed to do.

"Infinity Realcon has prima facie engaged in fund mobilising activity from the public, through the Offer of RPS and NCDs", and as a result of such activity has violated the provisions of Companies Act, SEBI Whole Time Member S Raman said in an interim order.

Accordingly, SEBI has asked Infinity Realcon not to "mobilise any fresh funds from investors through RPS and 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."

Besides, the company and its directors are prohibited from issuing any offer document 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 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 order said.

SEBI has also asked the entities not to dispose 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.

Further, Infinity Realcon Debenture Trust has been prohibited from continuing with his present assignment as a debenture trustee in respect of Infinity Realcon's issue and also from taking up any new assignment in a similar capacity.

These "directions shall take effect immediately and shall be in force until further orders."

Comments

User

sudhansusenapati0

11 months ago

How can we get public money ?

Subrata Ghosh

5 years ago

kaba thaka taka farot daba

subhankar Das

5 years ago

As I was the investor in Infinity Reailcon LTD

company I want to ask what about the return of the deposits. I was supposed to get the money by 2014 but now its 2016. Is there any process or submission that we have to do. let me know provision because its too late to get a reply from any one. i have registered the complain in number of websites connected to this issue.

subhankar Das

7 years ago

As I was the investor in this company I want to ask what about the return of the deposits. I was supposed to get the money by 2014 but now its 2016. Is there any process or submission that we have to do. let me know provision because its too late to get a reply from any one. i have registered the complain in number of websites connected to this issue.

Rupali Panchadhaye

7 years ago