Bharat Krishi Samridhi barred from fund raising via securities

Market regulator Sebi today barred Bharat Krishi Samridhi Industries Ltd from raising funds from the issuance of securities and has also barred the company and its directors from dealing in capital markets till its further orders.
The Securities and Exchange Board of India (Sebi) found that the company had mobilised funds from public through issuance of Secured Redeemable Non-Convertible Debentures (NCDs) and through such activity had "prima facie" violated various norms.
The market regulator observed that Bharat Krishi Samridhi Industries Ltd (BKSIL) NCDs issue was made to over 50 persons which under the rules made it a public issue of debt securities and hence would require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.

"It therefore prima facie appears that BKSIL... Has failed to ensure listing with a recognised stock exchange of the securities issued under the Offer of NCDs and Offer of Preference Shares were public issues of securities," it said.
Consequently, Sebi has asked BKSIL not to "mobilize any fresh funds from investors through the Offer of NCDs and Offer of Preference Shares or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions."
Besides, BKSIL and its directors -- Prabir Kumar Chattopadhyay, Pradip Kumar Das, Gulzar Ahmed, including its past director Firoz Hossain are prohibited from issuing any offer document for soliciting money from the public till further orders.

BKSIL and its directors are "restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions."

Sebi has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of NCDs, without prior permission from the regulator as well as not to divert the funds raised from public.
It has prohibited Bharat Krishi Secured Debenture Trust, Bharat Krishi Secured Debenture Development Trust from continuing to act as a debenture trustee in respect of the Offer of NCDs of BKSIL and also from taking up any new assignment, till further orders.

While asking BKSIL to provide a full inventory of all its assets and properties, Sebi has also asked the company to within 21 days from the date of receipt of the order submit all relevant and necessary particulars sought by the watchdog.