Sebi Orders Aapna Pariwar Agro to Refund Investors' Money
Regulator Sebi today asked Aapna Pariwar Agro Farming Developers India and its directors to refund the money that the company had collected illegally from investors and barred them from the markets for at least four years.
New Delhi, May 3 (PTI) Regulator Sebi today asked Aapna Pariwar Agro Farming Developers India and its directors to refund the money that the company had collected illegally from investors and barred them from the markets for at least four years.
According to Sebi, the company issued equity shares to 77 persons in 2009-2010 and mobilised Rs 30.50 lakh. Further, it raised Rs 41.85 lakh by allotting equity stocks to 53 persons in 2010-2011.
The number of investors to whom equity shares were allotted during these financial years are in excess of 49 so the firm was under a legal obligation to list such shares on a stock exchange. Among others, it was also mandatory for the firm to bring out a prospectus with respect to the public issue.
However, the company did not comply with the provision.
"I am, therefore, of the view that the company and its ... directors were engaged in fund mobilising activity from the public, through the offer and issuance of equity shares in contravention of the provisions of... the Companies Act, 1956 and...provisions of the ICDR Regulations," Sebi Whole Time Member G Mahalingam said in an order.
Accordingly, Sebi has asked the firm and promoters and directors including Rejul Karim, Swaminath Singha and Partha Gope Mazumder to jointly refund the money raised from investors along with an annual interest of 15 per cent.
These directors have also been restrained from the securities markets till the refund is completed.Thereafter, they will be prohibited from the markets for a further period of four years from the date of completion of the refund.
In case they fail to comply with the directions of refund, the Securities and Exchange Board of India (Sebi) may initiate recovery proceedings.
Sebi, through an interim order passed in November 2015, had barred the company and its directors from accessing the securities market.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)