Sebi bans Megasys H'care from raising funds via public issue

Capital markets regulator Sebi today prohibited Megasys Healthcare and its directors from raising fresh money from investors after finding that the company had illegally raised over Rs 50 lakh from people.
They have also been banned from raising funds from the public till further directions.
Securities and Exchange Board of India (Sebi) found that the company had raised Rs 52.16 lakh through the issuance of Non-Convertible Redeemable Secured Debentures (NCDs) from 151 investors during 2011-12 without complying with regulatory provisions applicable for a public issue.
The regulator observed that allotment of NCDs by the firm was a public issue (made to more than 49 people), which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which they failed to do.

The company is prima facie engaged in fund mobilising activity from the public, through the offer of NCDs and as a result of the aforesaid activity, has violated the provisions of the Companies Act, the regulator said in an interim order.
Accordingly, Sebi has put several restrictions on the firm and its directors.
The regulator has barred the company and its directors from mobilising any fresh "funds from investors through the offer of NCDs or through the issuance of equity shares or any other securities to the public, and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions".

They have been prohibited from accessing the securities markets, Sebi said.