Sebi bans 3 ex-directors of Silicon Projects India

Regulator Sebi today barred three past directors of Silicon Projects India from the securities market for at least four years in a matter related to illegal raising of Rs 18 crore from the public.
The past directors are Shib Narayan Das, Antara Mukherjee and Sayanti Sen.
According to a Sebi order, Silicon Projects India Ltd (SPIL) had issued and allotted secured redeemable non- convertible debentures (NCDs) to 406 investors during the financial years 2009-10, 2010-11 and 2011-12 and raised an amount of Rs 18.03 crore.
Since the securities were issued to more than 50 people, the offer of NCDs qualified to be a public issue and required their compulsory listing on a recognised stock exchange. However, SPIL did not comply with the provision.

Among other requirements, the firm was required to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do.
Das and Mukherjee were directors of SPIL during the three financial years when the firm raised Rs 18.03 crore through the offer of NCDs.

Sen was a director of the firm during financial years 2010-11 and 2011-12.
As per the order, the three individuals have to refund the money collected by the company during their respective period of directorship with an annual interest of 15 per cent.
Apart from banning the past directors from the securities market till the conclusion of four years from the date of completion of refunds, Sebi also restrained the three from associating themselves with any listed public company during that period.

The regulator's fresh ruling follows an interim order passed in July 2016 through which it had barred the three individuals from accessing the capital market "till further directions".
In March 2016, the Securities and Exchange Board of India (Sebi) had passed an order directing SPIL and its present directors to refund the investors. However, the regulator had initiated recovery proceedings against them after they failed comply with its direction.