Markets regulator Sebi has barred Media 9th Creations and its two directors from the securities market for at least four years and directed them to refund the money the firm had collected illegally from the investors.
The shares were issued to over 50 people and accordingly the offer of RPS qualified to be a public issue and required compulsory listing of securities on a recognised stock exchange. However, MCL did not comply with the provision.
Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do.
According to the order, MCL and its two directors -- Pushpal Roy Choudhury and Shuvra Roychoudhury -- have to the refund the investors along with an annual interest of 15 per cent.
Sebi has also restrained the two directors from associating themselves with any listed public company till the expiry of four years from the date of completion of refunds to investors.
In a separate order dated January 10, the regulator also prohibited Amit Baburao Ahire from buying, selling or dealing in the securities market for at least four years for violating IA (Investment Advisers) Regulations.
"The noticee (Ahire) has failed to exercise due skill, care and diligence and has acted dishonestly, allowing the integrity of the securities market to be compromised by allowing a restrained entity to continue providing investment services," said the Securities and Exchange Board of India (Sebi).
"The noticee is in violation of... the IA Regulations," it added.
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