Sebi bans Cell Industries, asks to refund investors' money

Cracking the whip on illegal money pooling schemes, Sebi today imposed a 4-year ban on Kolkata-based Cell Industries and also asked it to refund investors' money.
Besides the company, its directors -- Kumar Kanti Bhattacharya, Debi Prasad Mookherji, Sourav Bardhan, Ashim Gupta, Asraf Ali Shaikh, Shaikh Ajgar Ali, Saik Majaffar, Rajesh Jaiswal, Sekh Rezaul Karim and Koushik Mukherjee -- has also been barred from the capital markets.
The company had 'illegaly' raised Rs 14.69 crore through non-convertible debentures between 2010-11 and 2012-13 and Rs 92 lakh through redeemable preference shares in 2011-12.
The Securities and Exchange Board of India (Sebi) asked the entities to make the refund along with an interest of 15 per cent.

The securities were issued by the firm to more than 50 people, which qualified it as a public issue and requires compulsory listing on recognised stock exchanges.
The company and its directors were also required to file a prospectus, among other things, which they failed to do.
Besides, the debenture trustees of the company -- Ashish Kumar De Sarkar and Abdul Basad Molla -- are also restrained from the capital markets.
Non-compliance of these orders would make Sebi register a case with the state government or police against them for fraud, cheating and misappropriation of public funds. Besides, Ministry of Corporate Affairs would initiate the process of winding up of the company.