New Delhi: Markets regulator Sebi has ordered four companies to refund the money, which they had raised by issuing securities to investors without complying with the public issue norms.
The firms are Goldmine Food Products, Polaris Agro Industries, Rista Fisheries and Infrastructure and Sampriti Projects. Sebi asked the companies and their directors to refund the money along with an interest of 15 % per annum.
Besides, they are also barred from the capital markets for a period of four years.
A Securities and Exchange Board of India (Sebi) probe found that the firms had mobilised funds by issuing securities to more than 49 persons without complying with the public issue norms.
Polaris Agro Industries, Rista Fisheries & Infrastructure and Sampriti Projects had mobilised Rs 14.29 lakh, Rs 4.78 crore and Rs 7.69 crore, respectively, by issuing redeemable preference shares (RPS) to more than 49 investors.
Goldmine Food Products had raised about Rs 50 crore by alloting non convertible debentures (NCDs) during the financial years 2010-11 and 2011-12. While Polaris alloted preference shares to 123 investors, Rista fisheries and Sampriti Projects had raised funds from 552 and 8,497 individuals, respectively.
The securities were issued by the firms to more than 49 people, which qualified it as a public issue and requires compulsory listing on recognised stock exchanges.
The companies were also required to file a prospectus, among other things, which they failed to do. Although Goldmine Food Products claimed that the NCDs were issued to only 22 persons, Sebi noted that "it is difficult to accept the claim of the company" as the firm failed to submit the list of its NCD holders and other required information in spite of repeated reminders.
The regulator also found that the debenture trustee of the company operated without registration from Sebi. The four companies and their directors are restrained from accessing the securities market and are further restrained from buying, selling or dealing in securities, in any manner whatsoever, for a period of four years, Sebi said in four separate orders.
Besides, Goldmine Debenture Trust (represented by Sujata Saha) has been barred from engaging itself as a debenture trustees or in any capacity as an intermediary in the securities market, without obtaining a certificate of registration to undertake that assignment.
Non-compliance of these orders within three months would make Sebi register a case with the state government or police against them for fraud, cheating and misappropriation of public funds.
Besides, Ministry of Corporate Affairs would initiate the process of winding up of the companies. The directions would come into force with immediate effect.
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