Sebi bans Lokmangal Agro Industries, 7 directors from mkts

Sebi today banned Lokmangal Agro Industries and its seven directors from the securities market for at least four years and directed them to refund the money the company had raised illegally from the investors.

The directors are Smita Subhash Deshmukh, Vaijnath Nagappa Lature, Audumber Sandipan Deshmukh, Shahaji Gulchand Pawar, Gurrana Apparao Teli, Mahesh Satishchandra Deshmukh and Parag Suresh Patil.

According to a Sebi order, Lokmangal had mobilised funds amounting to Rs 74.82 crore from 4,751 investors during the financial years 200910 to 201112.

In its order, Sebi said the funds were garnered in contravention of the provisions of the Companies Act and ICDR (Issue of Capital and Disclosure Requirements) Regulations.

The firm and its directors have to refund the money collected through the issuance of equity shares with an interest of 15 per cent per annum.

Besides, the entities have also been prevented from selling their assets and properties, among others, except for the sole purpose of making the refund and deposit the proceeds in an escrow account opened with a nationalised bank.

Also, the entities, "with immediate effect", have been restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in it till the directions for refund to the investors are complied with and for a further period of four years from the date of completion of such refund.