Sebi bans senior official of PDS Agro from securities market for 3 years

Markets regulator Sebi on Wednesday restrained a senior official of PDS Agro Industries Ltd from accessing securities market for three years in a matter related to illegal mobilisation of money by the company.

The regulator had in April 2018 passed an interim order against the company and its officials for violation of public issue norms by issuing redeemable preference shares to at least 850 investors in the financial year 2010-11 and 2011-12, thereby, illegally raising Rs 52,82,500.

The regulator had also said that if the firm, its directors and promoters do not file any reply in 21 days or do not seek opportunity of hearing within 90 days, the prima facie findings with respect to violation of public issue norms would become final and the directions would become final and absolute against them.

No one except Sumana Ghosh Roy, who was a promoter of the firm and also a non-executive director from April 20, 2010 to July 30, 2010, filed the reply, Sebi noted.

Being a senior official of the firm, Roy was liable for violations committed by the firm.

Sebi said that Roy, by violating provisions of the Companies Act, "prejudicially affected the interest of investors and the securities market."

Thus, Roy has been barred from accessing securities market for three years.

The period of restraint already undergone by Roy, in terms of the interim order, shall be set off against the period of prohibition imposed by the regulator's order issued on Wednesday.