Sebi today banned Ambitious Diversified Projects and 16 other entities, including company directors, from the securities market for at least two years for illegally raising more than Rs 1 crore from the public.
The regulator in an order directed the company and its 11 former directors to refund the money collected through the issuance of non-convertible debentures (NCDs) with an annual interest of 15 per cent.
Of the 11 former directors, eight have been banned for at least four years, while three have been barred for at least two years. The company has been barred from the capital market for four years.
The regulator has also barred three present directors of the company from the securities market for four years.
In an order, Sebi noted that during financial years 2010 -11, 2011-12 and 2012-13, Ambitious Diversified Projects Management Ltd (ADPML) through the offer of NCDs, collected at least Rs 1.63 crore from various allottees.
Since the securities were issued to more than 50 people, the offer of NCDs qualified to be a public issue and required their compulsory listing on a recognised stock exchange. However, ADPML did not comply with the provision.
Among other requirements, the firm was required to register a prospectus with the Registrar of Companies under the Companies Act, which it failed to do.
The regulator said that the firm's present directors -- Rajkumar Yadav, Pradeep Ojha and Satyendra Singh Bhadouria -- are not liable for refund of money as they were not directors during the time of fund mobilisation.
However, the Securities and Exchange Board of India (Sebi) noted that the present directors were obligated to ensure refund of the money collected by the company to the investors.
In view of the failure to discharge the liability of ensuring refund, Rajkumar Yadav, Pradeep Ojha and Satyendra Singh Bhadouria are liable to be debarred for an appropriate period of time, Sebi said.
Sebi has also banned Ambitious Diversified Trust as well as the person representing it, Sriparna Gupta, from the securities market for four years for acting as a debenture trustee for the offer of NCDs by the company without the certificate of registration from the regulator.