Sebi asks Jivan Sathi Dream Projects to repay investors' money

Markets regulator Sebi today directed Kolkata-based Jivan Sathi Dream Projects Ltd (JSDPL) and its directors to repay the investors' money, which they had illegally raised from them.
Besides barring them for four years, the Securities and Exchange Board of India (Sebi) has directed them to refund the money along with 15 per cent annual interest.
A probe by Sebi found that JSDPL had raised Rs 38.58 crore through issuance of Redeemable Preference Shares (RPS) to 362 investors between 2011-12 and 2012-13.
Since the shares were issued by the firm to more than 50 people each, it qualified as a public issue that requires compulsory listing on the recognised stock exchange. It was also required to file a prospectus, among other things, which it failed to do.

In an order, Sebi has asked JSDPL, its director "to refund the money collected by the company through the issuance of RPS including ...With an interest of 15 per cent per annum, from the date when the repayments became due ...To the investors till the date of actual payment".
After completing the repayment, they will have to file a report of such completion with Sebi within three month certified by two independent Chartered Accountants.

Also, they have been "restrained and prohibited from buying, selling or otherwise dealing in the securities market, from the date of this order till the expiry of four years from the date of completion of refunds to investors".

In case they fail to comply with the order, Sebi would make a reference to state government or local police to register a case against them for fraud, cheating and misappropriation of public funds.
Earlier in February 2016, Sebi had barred JSDPL and its directors from the capital markets for violation of its public issue norms.