Sebi asks Waris Agrotech to refund public money with interest

Capital market regulator Sebi has ordered Waris Agrotech to refund the money it had illegally raised from investors along with interest.
The Securities and Exchange Board of India (Sebi) has also banned the company from the securities market for four years from the date of completion of refunds to investors.
The regulator found that Waris Agrotech had allotted redeemable preference shares to 475 individuals and had mobilised funds amounting to about Rs 36 lakh and therefore, had 'prima facie' violated the public issue norms.
Sebi observed that shares allotted by the company were made to more than 50 people and qualifies as a public issue.

Under the rules, a public issue requires compulsory listing on a recognised stock exchange. The company was also required to file their prospectus, which it failed to do.
In its order, Sebi has asked the company and its directors including former one -- Pradip Acharya, Dibakar Mandalk, Debasish Chatterjee and Polly Chatterjee -- to refund money collected from the investors with an interest of 15 per cent per annum compounded at half yearly intervals.

Besides, they have been directed to issue public notice, in all editions of two National dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons within 15 days.

After completing the repayments, the firm would have to file a report of such completion with Sebi within three months.
In case Waris Agrotech fails to comply with the order, Sebi would make a reference to the state government/local police to register a civil/criminal case against the company and its directors. It would also make a reference to Ministry of Corporate Affairs to initiate the process of winding up of the firm.