SEBI bars Kolkata-based pharma firm from raising funds

Market regulator Securities and Exchange Board of India (SEBI) on Wednesday prohibited Kolkata-based Asoka Lifescience Ltd. (ALL) from mobilising funds through issuance of securities as well as accessing capital markets on grounds of alleged illicit fund-raising activities.

It was alleged that the pharmaceuticals company raised funds from more than 6,000 investors during 2007-08 and again during 2011-12 through issue of Secured Redeemable Non-Convertible Debentures (NCD) which prima facie violated various capital market norms.

The regulator further ordered ALL's past and present directors to refrain from accessing the capital market by issuing offer documents, advertisement for soliciting money from the public for the issue of securities, until further directions are given.

The company has also been asked not to divert any funds raised from the public at large.

SEBI said the alleged capital market norms violator had issued NCDs to over 50 people without filing a regulatory declaration in any listed stock exchange which is a violation of the market rules.

The regulating authority has ordered ALL to provide full inventory details of all its assets and properties as well as furnish complete and relevant information as needed.

The debenture trustees of the company Dilip Mukherjee and Soumen Chatterjee have also been barred from continuing with their present role as well as issue new debentures.

SEBI said Mukherjee and Chatterjee failed to meet the eligibility criteria specified under the norms.