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Markets regulator Sebi has asked Goldmine Agro Ltd (GAL) and its directors to refund investors' money that the Kolkata-based company had raised illegally by issuing securities.
Besides, Sebi imposed a ban on the firm and its directors from accessing the capital markets for four years from the completion of refund.
Goldmine Agro mobilised funds illegally through issuance of non-convertible redeemable debentures (NCDs).
According to Sebi, Goldmine Agro had raked in Rs 35.62 crore by issuing NCDs to investors during 2009-10 and 2011-12. However, the company had not given details about the number of allottees.
The company, through such activity, violated various norms, Sebi noted.
The regulator observed that allotment of NCDs by the firm was a public issue, which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
In an order dated July 12, Sebi has asked GAL and its past and present directors -- Tushar Sur, Joydip Mukhopadhyay, Bablu Saha and Samir Kumar Mukherjee -- to refund the money collected through the issuance of NCDs, along with an annual interest of 15 per cent.
They have been restrained from buying, selling or otherwise dealing in the securities markets for four years and the ban will continue till the completion of refunds to investors.
In case the firm fails to comply with the order in three months, Sebi would make a reference to the state government or the local police to register a case against them for fraud, cheating and misappropriation of public funds.
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