Sebi bans Jeevan Suraksha Energy and Industries from markets

Regulator Sebi today barred Jeevan Suraksha Energy and Industries Ltd (JSEIL) from the capital markets for not complying with public issue norms.
The move comes after Sebi received a complaint against the company with regard to alleged fund mobilisation by way of issuance of Redeemable Preference Shares (RPS) and inability to recover investments and promised returns.
A probe conducted by Securities and Exchange Board of India (Sebi) found that the company allotted redeemable preference shares worth about Rs 25.82 lakh to 125 persons during 2012-13.
Sebi Whole Time member G Mahalingam said that it cannot be ascertained whether the company had in any single instance offered and allotted RPS to more than 49 persons.

"However, I note from the available record that in a short period of four months (from April to July 2012) the total number of allottees exceeds 49 and cumulatively the RPS were issued to 125 persons thereby raising Rs 25.82 lakh."
"This pattern of repeated allotment in small tranches appears to have been done solely for the purpose of circumventing the applicability ... of the Companies Act and consequent regulatory compliances," he said in an eight-page order.

On the basis of available information, Sebi said that the offer and allotment of preference shares by the company prima facie qualifies to be construed as an offer made to the public.

Accordingly, Sebi said JSEIL and its promoters/directors -- Chandan Das, Ashok Chakraborty, Uttam Acharjee, Arju Acharjee, Sangita Das, Subhrajyoti Das, Dipamoni Acharjee, Abrith Acharjee and Paban Malakar would not access the securities market or associate themselves with any listed company or firm intending to raise money from the public.
Besides, they have been prohibited from disposing of their assets as well as diverting any funds raised from public through the allotment of preference shares.